Income tax for the tax years 2023 and 2024 in Denmark are governed by various rates and threshold values. Below is an overview of the most common tax rates and threshold values relevant to the calculation of taxable income. These include elements such as free phone benefits, employee benefits, travel allowances, deduction limits, gifts, and more.
It is essential to note the differences between 2023 and 2024 to understand the updated rules and rates. For instance, changes can be observed in the threshold values for various deductions and the rates for income taxation, which can impact the tax liability for individuals.
We recommend that taxpayers carefully review these rates and threshold values in the context of their personal financial situations and tax obligations. Tax planning and attention to these rates can help optimize the tax burden and ensure compliance with tax obligations. If there is any uncertainty or a need for further information, we at Summ are ready to guide you thorugh.
| Tax Rates | 2023 |
|---|---|
| Free phone | 3,100 DKK |
| Threshold for personnel benefit taxation (employees) | 6,700 DKK |
| Threshold for personnel benefits | 1,300 DKK |
| Trade union, maximum tax-deductible amount | 6,000 DKK |
| Travel allowance per day for meals | 555 DKK |
| Travel allowance per day for lodging | 238 DKK |
| Travel allowance per day for incidentals (25% allowance) | 138.75 DKK |
| Travel allowance/ceiling over deduction (if travel allowances are not paid) | 30,500 DKK |
| Driving allowance up to 20,000 km per km | 3.73 DKK |
| Driving allowance over 20,000 km per km | 2.19 DKK |
| Bike/moped driving allowance | 0.61 DKK |
| Conveyance deduction for the first 24 km | 0.00 DKK |
| Conveyance deduction 24 km to 120 km | 2.19 DKK |
| Conveyance deduction over 120 km | 1.10 DKK |
| Gifts to charitable institutions | 17,700 DKK |
| Craftsman deduction (service services) | 6,600 DKK |
| Limit for transfer of business surplus to participating spouse | 262,500 DKK |
| Small acquisitions, immediate write-off | 32,000 DKK |
| Limit for tax-free gifts to close family members | 71,500 DKK |
| Limit for tax-free gifts to sons/daughters-in-law | 25,000 DKK |
| Christmas gifts from employer - tax-free | 900 DKK |
| Personal allowance (from 18 years) | 48,000 DKK |
| Personal allowance (under 18 years) | 48,000 DKK |
| Employment deduction | 10.60% / max. 45,600 DKK |
| Extra employment deduction for single parents | 6.25% / max. 24,400 DKK |
| Job deduction | 4.50% / max. 2,700 DKK |
| Basic tax | 12.06% |
| Top tax | 15% |
| Top tax, basic deduction after deduction of any AM contribution | 568,900 DKK |
| Top tax including AM contribution | 618,370 DKK |
| Marginal tax rate, oblique tax ceiling | 52.07% |
| Tax ceiling, capital income, excl. church tax | 42% |
| Labor market contribution | 8% |
| Company car, percentage of acquisition cost below or equal to 300,000 DKK | 23,5% |
| Company car, percentage of acquisition cost above 300,000 DKK | 21,5% |
| Company car, environmental surcharge (added to the value of the free car) | 450% |
| Tax Rates | 2024 |
|---|---|
| Free phone | 3,200 DKK |
| Threshold for personnel benefit taxation (employees) | 7,000 DKK |
| Threshold for personnel benefits | 1,300 DKK |
| Trade union, maximum tax-deductible amount | 7,000 DKK |
| Travel allowance per day for meals | 574 DKK |
| Travel allowance per day for lodging | 246 DKK |
| Travel allowance per day for incidentals (25% allowance) | 143.50 DKK |
| Travel allowance/ceiling over deduction (if travel allowances are not paid) | 31,600 DKK |
| Driving allowance up to 20,000 km per km | 3.79 DKK |
| Driving allowance over 20,000 km per km | 2.23 DKK |
| Bike/moped driving allowance | 0.62 DKK |
| Conveyance deduction for the first 24 km | 0.00 DKK |
| Conveyance deduction 24 km to 120 km | 2.23 DKK |
| Conveyance deduction over 120 km | 1.12 DKK |
| Gifts to charitable institutions | 18,300 DKK |
| Craftsman deduction (service services) | 6,900 DKK |
| Limit for transfer of business surplus to participating spouse | 271,800 DKK |
| Small acquisitions, immediate write-off | 33,100 DKK |
| Limit for tax-free gifts to close family members | 74,100 DKK |
| Limit for tax-free gifts to sons/daughters-in-law | 26,000 DKK |
| Christmas gifts from employer - tax-free | 900 DKK |
| Personal allowance (from 18 years) | 49,700 DKK |
| Personal allowance (under 18 years) | 49,700 DKK |
| Employment deduction | 10.60% / max. 45,100 DKK |
| Extra employment deduction for single parents | 6.25% / max. 25,300 DKK |
| Job deduction | 4.50% / max. 2,800 DKK |
| Basic tax | 12.06% |
| Top tax | 15% |
| Top tax, basic deduction after deduction of any AM contribution | 588,900 DKK |
| Top tax including AM contribution | 640,108 DKK |
| Marginal tax rate, oblique tax ceiling | 52.07% |
| Tax ceiling, capital income, excl. church tax | 42% |
| Labor market contribution | 8% |
| Company car, percentage of acquisition cost below or equal to 300,000 DKK | 23% |
| Company car, percentage of acquisition cost above 300,000 DKK | 22% |
| Company car, environmental surcharge (added to the value of the free car) | 600% |