Taxes in Europe Database v2
Income Tax Act (1999:1229) and Local Government Act (1991:900).
Local income tax is paid to the municipal and the county.
Unrestricted tax liability:
Restricted tax liability:
National and Local income taxes are levied on earned income.
The earned income consists of income from employment (salaries, wages, pensions and other similar kinds of remuneration) and on income from unincorporated business. Income tax is also levied on, for example, sickness allowances and unemployment benefits. Expenses for acquiring the income are deductible. The assessed income is calculated by subtracting general allowances.
The basic income tax allowance depends in income and amounts to SEK 13,100- 34,300 (2015).
A tax credit is allowed for the general pension contribution. The tax credit is equal to the contribution.
For income from employment or unincorporated business income, an earned income tax credit is allowed (in-work tax credit). The maximum credit is SEK 26,400.00 (2015 and average municipality tax rate) for people65 years and younger and 30,000 for people over 65 years of age. This tax credit only affects the central government tax revenue.
For capital losses (gains – losses) a tax credit of 30 % is allowed.
Applies to unincorporated business income.
Refers to central government tax
The local government income tax depends on municipalities and county. The average tax rate is 31.99 % (2015).
The tax is collected by the yearly assessment.
Non-residents that have been liable to pay income tax according to the Income Tax Act and that receive all or almost all of their income from Sweden, can choose to be taxed according to the Income Tax Act or the Income Tax on non-Residents Act.
The revenue is net of tax credits. Between 2000 and 2006 a reform took place that concerned the relation between income tax and the general pension contribution. The reform shifted from a deduction of the general pension contribution amount to a tax credit of this amount. Consequently, the tax credits rose during this period. In 2007, the in-work tax credit was introduced. The in-work tax credit was extended 2008, 2009, 2010 and 2014.
Personal income tax is a part of D5.