Taxes

Overview

How Danish Tax Works

Denmark has some of the highest taxes in the world — but also some of the most comprehensive public services. The effective tax rate for most workers is 37–42%. Income tax is split between state, municipal, and labour-market contributions. SKAT (Skattestyrelsen) handles everything.

Labour market contribution (AM-bidrag)

8% of gross salary

Municipal tax (average)

24.9% (2026 average across municipalities)

Bottom-bracket state tax

12.09%

Top-bracket state tax (over DKK 588,900)

15% additional

Tax ceiling

52.07% (max effective rate)

Filing Taxes

Filing Your Tax Return

Denmark pre-fills your tax return (aarsopgoerelse) using employer payroll data, bank interest, and property records. Most Danes simply review and approve it in March. Expats must check carefully — foreign income, double taxation treaties, and moving-year splits are common issues.

Pre-filled return available

March each year on skat.dk

Deadline to review/correct

May 1 (automatically approved if no action)

Common deduction: transport

DKK 2.23/km (over 24 km daily commute)

Common deduction: haandvaerker

DKK 12,900/year for home services

Filing portal

skat.dk via MitID

1. Log in to skat.dk with MitID in March when your return becomes available
2. Review all pre-filled income, deductions, and bank interest
3. Add transport deduction if your daily commute exceeds 24 km each way
4. Add haandvaerkerfradrag for eligible home repair or cleaning services
5. Submit corrections before May 1 or accept the pre-filled return

Expat Tax Scheme

The 27% Expat Tax Scheme

Denmark's Forskerordningen (researcher tax scheme) lets qualifying expats pay a flat 27% tax (plus 8% AM-bidrag = 32.84% effective) for up to 7 years instead of the normal 37–52%. You must earn at least DKK 75,600/month and not have been tax-resident in Denmark for 10 years prior.

Flat tax rate under scheme

27% (+ 8% AM = 32.84% effective)

Maximum duration

7 years

Minimum monthly salary (2026)

DKK 75,600 gross/month

Prior Denmark tax residency

None in preceding 10 years

Application deadline

Within 30 days of start of employment

1. Verify you meet the DKK 75,600/month salary threshold and the 10-year non-residency rule
2. Apply to SKAT within 30 days of your employment start date
3. Submit form 04.063 with your employment contract and CPR number
4. Await SKAT approval (typically 4–8 weeks)
5. Monitor your tax card to confirm the 27% rate is applied from month one