Income tax in Denmark is complex. The individual income tax ranges from 8% to 56.5%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates, such as the household status, the number of children, and the employee's location. Local, Church and state taxes may also apply.
Gross Annual Income | Tax Rate (%) |
---|---|
Up to DKK 50,761 | 8% |
Up to DKK 544,800 | 42.83% |
Over DKK 544,800 | 56.5% |
The employer cost is generally estimated at 1% of the employee salary.
Monthly costs
- AES (labour market insurance) - DKK 33
- ATP (Labour Market Supplementary Pension) - DKK 189.35
- Financing contribution (FIB) - DKK 47.58
- Compulsory occupational injury insurance - 273.60 kr
- Maternity contribution - DKK 112.50
- AUB (Education contribution) - DKK 267.75
- AFU (Labor Market Fund for Secondary Persons) - DKK 0.58
- Administration of holiday fund - DKK 10.20
- Administration of frozen holiday pay - DKK 1.58
- Compulsory Occupational Injury Insurance - DKK 273.60
- Ferietillæg - 1% of the employee's gross salary
Annual and conditional costs
- 5th Week Vacation - Salary for up to 5 days of vacation for employees with unused vacation by the end of the spending year
- Vacation and Holiday Allowance - Salary for the unused vacation, up to 12.5% of the employee's annual base salary, accrued monthly.
Mandatory for terminated employees with unused vacation and paid to Feriekonto.