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 need to apply for a Danish tax card from the Danish Tax Agency (Skattestyrelsen). If you have any questions about your annual tax statement, tax return or preliminary tax assessment, you must contact the Danish Tax Agency.