Navigation path

Measures List
First Prev Next Last Separator
Measure Name
Date when measure came into force
Different changes in the Personal Tax Act 2013/01/01
Increases in the personal income tax 2013/01/01
Continuation of the deduction on house work 2013/01/01
Employment allowance for single providers 2014/01/01
PIT - Raise in employment allowance 2014/01/01
Inflationary adjustments 2014/01/01
Results 1 - 6 of 6.

Generic Tax Name Personal income tax - State and municipal income tax
Tax name in the national language Indkomstskat til staten og Kommunal indkomstskat
Tax name in English State income tax and Municipal income tax
Member State DK-Denmark
Tax in force since 1903/06/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

State income tax:

Statutory Notice No 1041 of 15th September 2014 (Tax Assessment Act/Ligningsloven), Statutory Notice No 382of 8th April 2013 (Personal Tax Act/Personskatteloven), Statutory Notice No 1403 of 7th December 2010 (Act on Tax at Source/Kildeskatteloven), and Statutory Notice No 964 of 19th September 2011 (Act on Child benefit allowance/Børne- og ungeydelse)


Municipal income tax:

Law on taxation by municipal authorities (Lov om kommunal indkomstskat), see Statutory Notice No 725 of 26 June 2006.

In addition to the state and minicipal tax, the Danish PIT also consists of 'tax on employee shares and bonds', 'taxation of pension schemes', and 'labour market contribution'. Information on these three personal income taxes can be found in their own seperate tax forms.

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by


Geographical Scope
Domestic-source income of non-residents is Taxed
Not Taxed

Employment incomes of married couples are Taxed jointly
Taxed separately


Individuals resident in Denmark.

Tax object and basis of assessment
As general rule, taxable income under personal income tax includes


Income considered Domestic income
Worldwide income (subject to double-tax relief)

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable



The tax basis is ordinary taxable income including income from foreign sources. Income from a foreign company which is controlled by the individual resident in Denmark and whose income is taxed considerably lower than in Denmark (The so‑called controlled foreign company rule).

Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:


Deductions from the tax base
The following items are usually (partially or fully) deductible


The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents

The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:


Losses can be
Carried-forward for Indefinite
Carried-back for Indefinite
Transferred to spouse or partner

The following income is exempted from income tax




Income included in personal income:

Wage, profit from business, fees, fringe benefits, old age pension, unemployment benefit, early retirement benefit, private pension, economic support from other sources, etc.


Deductions made in the computation of personal income:

Labour market contribution, operating costs for self-employed persons, contributions to pension funds (either by deduction on the tax form or by leaving them out of account of wage income for the employer administered contributions) etc.


Taxable income is personal income plus net capital income minus assessment deductions.


The tax liability on the net income is reduced by the tax value of a uniform personal allowance for central and municipal income tax purposes, church tax included. The personal allowance is DKK 43,400 (2015), and DKK 32,600 (2015) for persons under 18 year.


Net capital income (positive or negative) is included in taxable income, which is the base for municipal health tax and church taxes.


The basis for progressive state taxes is personal income plus positive net capital income. Hence, the taxable value of interest payment deductions (negative capital income) is determined by the flat local tax rate, and not by the progressive state income tax rate.


There is an earned income tax credit (employment allowance) at 8.05% (2015) of wage income up to max. DKK 26,800 (2015), that is taken into account in calculating health tax and local income tax base (taxable income).


Some other deductions are taken into account only in calculating local income tax base.


Unused personal allowance is transferred to the other spouse in assessing the base tax.


Importation of a new extra employment allowance for single providers from 2014. In 2015 the extra allowance is 5.4 pct., but with a maximum of DKK 17,900, that is taken into account in calculating health tax and local income tax base (taxable income). The allowance was a part of the Tax Reform 2012, and was brought forward by Finance Act 2014. 

Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From   EUR/Natcur
To   EUR/Natcur

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Annuities from life insurance
Prizes and awards
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities

Withholding taxes
The tax is withheld when paid to residents on: Dividends:
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits:
Final Creditable


In January 2010 the new tax reform Forårspakke 2.0 was enforced. The middle tax bracket at a 6% rate was abolished and the bottom tax was reduced with 1,5 percentage point. The top tax threshold was increased to DKK 389,900 in 2010, but is gradually changed to be DKK 459,200 in 2015. The progressions level for share income is removed and replaced with a rate at 42 % of all share income above DDK 49,900.

Taxable income is split into two components, personal income and capital income.

State income tax levied in 2015:

  • a tax of 23.5% on the controlled foreign company income;
  • base tax of 8.08 % on taxable on the aggregate of personal income plus positive net capital income after deduction of DKK 43,400.
  • a top tax of 15.0 % on the aggregate of personal income and positive net capital income after deduction of DKK 459,200.

The thresholds are adjusted in line with a factor laid down annually by law. The adjustment factor reflects the annual increase in wages in the private sector labour market two years back in time. However, the thresholds are not adjusted from 2009 – 2013 as stated in the reform Forårspakke 2.0.

If the combined total of a taxpayer's state, county and municipal income taxes exceeds 51.95% of a specified proportion of the personal income, the state income tax is reduced accordingly.

The municipal authorities fix the percentage of the levy for one calendar year at a time. Non‑residents pay municipal income tax on the limited income. In 2015 the average municipal income tax rate is 24.904% varying between 22.5% and 27.8% across the country.

Tax bases and tax rates in 2014 and 2015

Type of tax 

Standard deduction DKK


Tax base 

Tax rate 


Transferring of deduction between spouses 





Bottom bracket tax




Personal income + positive net capital income









Top bracket tax



Personal income + positive net capital income
+ payments to capital pension schemes

 15.0 ÷ tax ceiling rebate

  15.0 ÷ tax ceiling rebate


However, net positive capital income is taxed jointly

Health tax1)



Taxable income












Municipal tax


Church tax


Labour market contribution 3)

No deductions

Labour market income

 8.0  8.0


Share income tax 4)


Share income






1) For children under 18 years the standard deduction is DKK 32,600.

2) National average.

3) See the description of the 'Labour market contribution'.

4) See the description of 'Capital tax - Share income' as well as 'Tax on employee shares and bonds'.

For a description on how pension schemes are taxed, please see the description of 'Taxation of pension schemes'

Tax due date
Tax collector

The employer or employing authority is required to withhold from the remuneration paid for personal work of a service nature and from certain other types of income, such as pensions, a provisional tax known as A‑tax.

Royalty payments to non‑residents are subject to a tax of 25 % or to the tax due under double taxation agreements. Other income, primarily from self‑employment and capital, normally the taxpayer pays a provisional tax according to a demand note, known as B‑tax.

A‑tax is withheld from every person who receives a salaried income in Denmark from employment there or who receives a pension or allowance from Denmark.

The basis of assessment of tax is the taxpayer's gross income minus all deductions other than the personal allowance. However, a further deduction is made of a sum equal to the figure, which would be obtained if the personal allowance were taxed at the lowest rate.

The provisional taxation of married couples is levied on each of them separately.

Special features

Married couples:

Spouses are taxed separately. Account is however taken of a spouse's net capital income when assessing tax. Also the basic allowance can be transfererd among spouses. Children are liable to tax independently.



Individuals are taxable on their income in Denmark from employment, pensions or grants, etc., according to the same rules as residents, apart from a certain standardisation of the rules on personal allowance and certain restrictions as to the allowance on assessment, depending on whether those concerned have been living in the country for more or less than six months.



The value for tax purposes of any shortfall in taxable income is set off against the taxpayer's top tax and dividend tax. If the taxpayer is married and the spouses are cohabiting at the end of the year, any remaining shortfall is deducted from the spouse's taxable income, and thereafter the tax value of any shortfall remaining is deducted from the spouse's taxes. Anything still remaining can be carried forward for the following years.

Negative personal income can be set off only against the income which forms the basis of assessment for the top tax, i.e. positive net investment income and personal income. In the year of the shortfall, negative personal income is deducted from the taxpayer's positive net investment income. If the taxpayer is married and cohabiting with his spouse at the end of the year, the shortfall is deducted in the first place from the spouse's personal income, and in the second place anything remaining is deducted from the total positive net investment income of the two spouses. Any remaining shortfall in personal income is carried forward for the following years.

A negative net investment income is not carried forward independently, but is deducted in calculating taxable income.


Beneficiary of Municipal income tax:

The income tax of a person fully liable to municipal income tax is normally payable to his/her tax municipality, i.e. the municipality in which the person in question is resident or - if he has no place of residence - to the municipality in which he was staying on 5 September before the calendar year in question. The same rule applies for married women. However, another municipality can be fully or partly entitled to tax, since a stay of at least three months in a municipality gives that municipality a right to part of the municipal income tax to which the taxpayer is liable, calculated in proportion to the length of the stay.

Persons who are only partly liable to tax usually pay income tax to the municipality in which they receive their income.


Extra employment allowance for single providers:

The extra employment allowance for single providers from 2014 was introduced with the Tax Reform 2012. In 2015 the extra allowance is 5.4 pct., but with a maximum of DKK 17,900. Going to 2022 the extra allowance will be raised to 6.25 pct. with a max of DKK 20,400.


Reduced child benefit allowance for families with high incomes:

With the Tax Reform 2012 a gradual reduction of the child benefit allowance for families with high incomes was introduced with a full effect from 2014. The allowance is reduced with 2 pct. of the yearly income, that is above a limit of DKK 723,100. The allowance is reduced if either one or both parents have a yearly income above DKK 723,100.

Economic function

Environmental taxes

Tax revenue
ESA95 code d51ma + d51mb + d51mc (d51aa + d51ab + d51ac)

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 336,368.23 DKK 17.87
2011 326,181.50 DKK 17.79
2010 317,965.11 DKK 17.68
2009 312,727.95 DKK 18.24
2008 331,604.34 DKK 18.45
2007 326,833.31 DKK 18.79
2006 309,132.82 DKK 18.37
2005 293,695.30 DKK 18.51
2004 278,189.82 DKK 18.48
2003 273,603.01 DKK 19.04
2002 269,170.60 DKK 19.09
2001 266,956.01 DKK 19.46
2000 254,672.13 DKK 19.19