The Danish tax system

The Danish welfare model with many free welfare services is one of the reasons for the relatively high tax burden in Denmark. Taxes are used to pay, among other things, for the public health care service, children’s schooling and education as well as eldercare.

The Danish income tax system is progressive, which means that high-income earners pay a relatively higher proportion of their income in tax than people with lower incomes. The intention of the system is that those earning the most should contribute the most to the common benefits of society.

Tax card

You will automatically receive a tax card from the Danish Tax and Customs Administration, SKAT. If you need to change your tax card or if you have any questions about your annual tax statement, income tax return or preliminary tax assessment, you must contact SKAT. It is only necessary to change your tax card in case of material changes to your income.

You can read more about tax on SKAT's website