The Tax Reform 2026 takes effect on 1 January, bringing major changes to the Danish tax system.
The new rules redefine how much income is subject to top tax (topskat) and middle tax (mellemskat), while also increasing the most important deductions.
The reform is designed to make work more rewarding and give Danes more disposable income through fairer taxation and updated thresholds.
What is the 2026 Tax Reform?
The Tax Reform 2026 was adopted in 2024 and introduces a new middle tax bracket, a higher top tax threshold, and increased personal and employment deductions.
For most Danes, this means a higher take-home pay from 2026 onwards.
The changes follow the annual adjustment rule under Section 20 of the Danish Personal Tax Act (Personskatteloven), which aligns tax thresholds with general wage growth.
For 2026, the adjustment rate is 4.8%, resulting in noticeable increases across most deduction limits.
Key figures for 2026
| Tax threshold | 2025 | 2026 | Change |
|---|---|---|---|
| Middle tax (7.5%) – income after AM-bidrag from | – | 641,200 DKK | New rate |
| Top tax (15%) – income after AM-bidrag from | 611,800 DKK | 777,900 DKK | +166,100 DKK |
| Top-top tax (20%) – income after AM-bidrag from | – | 2,592,700 DKK | New rate |
| Max employment deduction | 55,600 DKK | 63,300 DKK | +7,700 DKK |
| Personal deduction | 51,600 DKK | 54,100 DKK | +2,500 DKK |
Source: Danish Ministry of Taxation – Beløbsgrænser i skattelovgivningen, 2025–2026.
How the changes affect you
1️⃣ The new middle tax
A 7.5% middle tax now applies to income between 641,200 DKK and 777,900 DKK, reducing the number of people paying top tax.
Around 300,000 Danes are expected to receive annual tax savings of up to 14,700 DKK.
2️⃣ A higher top tax threshold
Top tax now applies only from 777,900 DKK in personal income (before AM-bidrag), equal to roughly 70,000 DKK per month.
This means around 285,000 people will no longer pay top tax at all.
3️⃣ The new top-top tax
A new 20% top-top tax applies to very high incomes above 2.6 million DKK, although the net effect only appears above 3.1 million DKK, after offsetting other tax reductions.
More money for employees and seniors
Employment deduction
The employment deduction rises to 63,300 DKK, giving employees with salaries over 41,000 DKK/month about 2,000 DKK in annual tax savings.
A new senior employment deduction up to 6,100 DKK will also apply to those working within two years of reaching retirement age.
Personal deduction
The personal deduction increases to 54,100 DKK in 2026.
Married couples get double, for a total of 108,200 DKK before tax.
For businesses and self-employed taxpayers
Self-employed individuals and company owners should review their preliminary tax assessment (forskudsopgørelse) in November 2025.
The new thresholds will affect pre-paid taxes, deductions, and business income transfers.
At Andreas Regnskab, we help calculate how the Tax Reform 2026 impacts both your private and business finances.
Why the change?
The government’s goal is to increase labour supply and reward those who take on extra work.
By introducing a middle tax and raising the top tax limit, the Tax Reform 2026 lowers marginal tax rates for most workers.
According to the Ministry of Taxation, the reform is expected to create up to 8,000 full-time positions nationwide.
How to prepare
- Log in to skat.dk in November 2025 to view your 2026 preliminary tax assessment
- Check your income, B-tax, and deductions
- If you commute long distances, you may also benefit from the new commuting deduction rules for 2026
- Contact us to ensure your deductions are fully optimized
In short: 2026 will bring lower taxes for many
Most Danes will see a higher net income from January 2026.
High earners will pay less top tax, while employees and seniors benefit from increased deductions.
Just make sure your forskudsopgørelse is updated — that’s where the real savings start.
