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About Denmark tax

Denmark's tax system starts with AM-bidrag — an 8% labour market contribution taken off the top before income tax is calculated. After that deduction, a personal allowance (personfradrag) of DKK 49,700/year applies. Bottom-bracket (bundskat) tax is 12.11%, and most workers in Copenhagen pay a municipal rate of around 23.5%. Above DKK 588,900 of gross income, a top-bracket (topskat) of 15% applies, pushing the marginal rate past 56%.

Danish church tax (kirkeskat, roughly 0.7%) is optional for non-members of the Church of Denmark, and workers can opt out via Skattestyrelsen. ATP pension contributions (DKK 284.25/month for full-time workers) are also deducted from gross.

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