10 Billion DKK tax break proposed

The Danish government has proposed a tax reform, which will give a tax break of 10 billion Danish Kroner (DKK) to 3.3 million Danes from 2026. The reform has also introduced a new "top-top-tax" for people with an annual income of more than 2.5 million DKK.
A picture showing a pair of scissors cutting a bag of money in half. The bag has text saying: "10 billion", and 3 coins are falling out of the bag and into a piggy bank. In the background a group of people is seen.

10 billion DKK yearly tax break

The Danish government has propsed a 10 billion Danish Kroner (DKK), roughly 1.3 billion EUR, tax break from 2026. The tax break will come into effect from 2026 and save Danish tax subjects an estimated 10 billion DKK yearly.

While 3.3 million Danes will receive tax breaks of said 10 billion DKK, roughly 8000 Danes will have to pay more in taxes due to the introduction of a new “top-top-tax” (top-top-skat) for persons with a yearly income of more than 2.5 million DKK.

Those who already pay top tax will be moved to a bracket of in-between tax (mellem-skat) of 7,5% instead of the current 15%. Persons who do not pay top tax will receive a yearly tax break of roughly 3000 DKK.

Before 2026

After 2026

15% top tax
618,400 DKK | 82,919 EUR

+5% extra top tax
2.5 million DKK | 335,191 EUR

+7.5% top tax
750,000 DKK | 100,559 EUR

7.5% Intermediate tax
618,400 DKK | 82,919 EUR


Link to source: The Danish Ministry of Economic Affairs (text in Danish)

A model showing the difference in tax before and after the new tax reform proposal to take effect from 2026

Link to source: The Danish Ministry of Economic Affairs (text in Danish)

Link to source: The Danish Ministry of Economic Affairs (text in Danish)

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