Tax rates and brackets

Four tiers of state tax

State tax in Denmark is progressive and, after the 2026 reform, has four tiers, all charged on personal income (pay after the AM contribution). A higher tier applies only to the part of income above a threshold, never to the whole salary. For 2026 the tiers look like this:

• 12,01 % bottom tax on all personal income.
• 7,50 % middle tax (new in 2026) on income above 641.200 kr..
• 7,50 % top tax on income above 777.900 kr..
• 5,00 % top-top tax (new in 2026) on income above 2.592.700 kr..

On top of the state tax comes municipal tax, charged on taxable income. The rates here are the rates in force for 2026 and are confirmed against the skm.dk 2026 rate table at the final review.

The tax ceiling

So that the combined marginal rate does not get too high, the tax ceiling (det skrå skatteloft, section 19 of the Personal Tax Act) sets a single cap of 44,57 % on bottom tax + middle tax + municipal tax (excluding the AM contribution and church tax). If your municipal rate is high, the middle tax is reduced so the cap holds — this applies only to high incomes in high-rate municipalities. Top tax and top-top tax have no ceiling of their own; 52,07 % and 57,07 % are simply the resulting maximum marginal rates. The exact section-19 wording is confirmed at the final review.

Employment and job allowances

Two automatic allowances reduce taxable income — that is, the basis for municipal tax, not state tax: the employment allowance (12,75 %, max 63.300 kr.) and the job allowance (4,50 % of income above 235.200 kr., max 3.100 kr.). They are applied automatically and need no input.