🇩🇰 calculators.denmarkIncomeTax
Calculate your net income and tax liability in Denmark.
💶 Income Details
Regional taxes vary by location.
Avg. 0.88% church tax.
Net Annual Income
251.375 kr.
≈ $251,375
20.948 kr. per month ($20,948)
AM-bidrag (Labor Market)
32.000 kr.
8% Flat Rate
Municipal Tax
75.437 kr.
23.7%
State Tax (Bundskat)
38.387 kr.
12.06%
Church Tax
2.801 kr.
Tax Breakdown
Key Concepts
AM-bidrag
A flat 8% labor market contribution tax deducted from your gross salary before other taxes.
Municipal Tax
A local tax varying by municipality, averaging around 25%.
State Tax
Consists of a bottom tax (Bundskat) and a top tax (Topskat) for high earners.
Tax System Details
The Danish tax system is comprehensive and primarily funds the extensive welfare state.
AM-bidrag
All working individuals pay an 8% labor market contribution. This is calculated on the gross income before other taxes.
Personal Allowance (Personfradrag)
Every taxpayer has a personal allowance (DKK 49,700 in 2024) which is tax-free for state and municipal taxes.
Topskat (Top Tax)
An additional 15% tax is levied on income exceeding DKK 588,900 (after AM-bidrag).
Frequently Asked Questions
What is AM-bidrag?
AM-bidrag (Arbejdsmarkedsbidrag) is an 8% tax deducted from your gross salary before any other tax calculation. It funds the unemployment insurance system and job training.
What is the personal allowance?
The personal allowance (Personfradrag) is the amount you can earn before paying state and municipal tax. For 2024, it is DKK 49,700 for people aged 18 and over.