Personal allowance
The personal allowance is a tax-free base amount that every adult receives. It does not work as a deduction from the base but as a tax value: the allowance is multiplied by the bottom-tax, municipal and church rate separately and subtracted from the calculated tax. The amounts shown are those in force for 2026.
A tax-free base amount
The personal allowance is a tax-free base amount that every adult receives. For 2026 it is 54.100 kr. a year. The idea is simple: a first slice of your income is free of tax.
A tax value, not a deduction from the base
Here the Danish system surprises many. The personal allowance is not subtracted from your income before the tax is calculated. Instead it works as a tax value: the allowance is multiplied by the bottom-tax rate, the municipal rate and — if you are a member of the national church — the church rate separately, and the three amounts are subtracted from the calculated tax. So it does not affect the middle, top or top-top tax. See tax rates for the tiers and municipal tax for your municipality’s rate.
If income is below the allowance
If your income is below the personal allowance, part of it goes unused. For spouses the unused part can be transferred — that is not modelled in this version. The amount on this page is the value in force, taken from the skm.dk 2026 rates.