Denmark Personal Income Tax
Detailed personal income tax rates and rules for Denmark in 2026.
Danish personal income tax has multiple components: an 8% labor market contribution (AM-bidrag) on gross income, municipal tax averaging ~25% (varies by municipality from 22.5% to 27.8%), a bottom state tax of 12.09%, and a top state tax of 15% on personal income exceeding DKK 588,900. A personal allowance (personfradrag) of DKK 49,700 applies. The combined top marginal rate including AM-bidrag is approximately 55.9%. A tax ceiling (skatteloft) ensures the combined marginal rate of income tax (excluding church and AM) does not exceed 52.07%.
| Income Range (DKK) | Tax Rate |
|---|---|
| kr 0 – kr 50K | 0% |
| kr 50K – kr 589K | 37.1% |
| kr 589K+ | 52.1% |
Filing Deadline
May 1 of the following year (extended to July 1 for self-employed)
Residency Rule
An individual becomes a Danish tax resident if they acquire a permanent home in Denmark or stay for more than 6 consecutive months (including short stays abroad). Residents are taxed on worldwide income. Denmark operates a comprehensive PAYE system.
Additional Notes
Denmark's researcher tax scheme (forskerordningen) allows qualifying foreign researchers, key employees, and executives to pay a flat 27% tax (plus AM-bidrag of 8%, effective ~32.84%) for up to 7 years. The employee must earn a minimum monthly salary of approximately DKK 75,100. Denmark also has a church tax (kirkeskat) of ~0.4-1.3% for members of the Evangelical Lutheran Church, which about 72% of the population pays.
How Denmark Income Tax compares
Denmark’s top personal income tax rate of 55.9% is the 3rd highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Europe’s regional average of 32%.
