DoubleTaxationTaxes on salary: Denmark preliminary data
How much income tax and social contributions are paid on a salary in Denmark, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | DKK 448,164 ≈ €60,000 |
|---|---|
| Income tax | DKK 117,716 ≈ €15,760 |
| Employee contributions | DKK 35,853 ≈ €4,800 |
| Take-home pay | DKK 294,594 ≈ €39,440 |
| Employer's labour cost | DKK 448,164 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 DKK 224,082 | €60,000 DKK 448,164 | €120,000 DKK 896,327 |
|---|---|---|---|
| Sole proprietor | DKK 58,423 29.0 % | DKK 136,129 33.7 % | DKK 310,581 38.5 % |
| Company | DKK 110,436 54.8 % | DKK 220,873 54.8 % | DKK 441,746 54.8 % |
Special tax regimes
Forskerskatteordningen (tax scheme for researchers and highly paid employees)
For people relocating · rate 32.8 %
Who: Researchers (PhD level, approved) or key employees with guaranteed monthly pay of at least DKK 65,400 in 2026 (DKK 67,300 in 2027), hired by a Danish employer, with no Danish tax liability in the previous 10 years.
Salary taxed at a flat 27% plus 8% AM contribution (32.84% of gross) instead of progressive tax, for up to 7 years.
Legal basis: Kildeskatteloven §§ 48 E-48 F
Virksomhedsordningen (business tax scheme for sole traders)
For the self-employed · rate 22.0 %
Who: Self-employed individuals carrying on a business who opt in and keep separate business accounts.
Profit left in the business is taxed provisionally at 22% (virksomhedsskat, as for companies) instead of progressive personal tax; the provisional tax is credited when the savings are withdrawn and then taxed as personal income. Business interest is deductible against personal income, and a return on invested capital can be taxed as capital income.
Legal basis: Virksomhedsskatteloven (VSL); Den juridiske vejledning C.C.5.2
Tax residence
The tax residence check does not cover Denmark yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 7.469395 DKK (ECB euro reference rates 2 Jan 2026: 7.4694 DKK per EUR / 1.1721 USD per EUR (DKK is pegged to EUR in ERM II, central rate 7.46038), 2026-01-02) ↗
Sources
- Skattestyrelsen (skat.dk) — Bundskat, mellemskat, topskat og toptopskat (2026 rates and thresholds)
- Skatteministeriet — Faktaark: ændringer i satser og beløbsgrænser (employment allowance 2026, new top-tax structure)
- Skattestyrelsen (skat.dk) — Forskerskatteordningen
- OECD Tax Database — Central government PIT (tax credit for personal allowance, AM 8%), 2025
- OECD Tax Database — Sub-central PIT rates (municipal average/min/max), 2025
- OECD Tax Database — Corporate income tax and dividend tax rates, 2026
- ECB — euro foreign exchange reference rates (DKK, USD), 2 Jan 2026
- Skattestyrelsen — Den juridiske vejledning C.C.5.2.1: tax advantages of virksomhedsordningen (22% provisional business tax)
- Skattestyrelsen (skat.dk) — Fradrag: personfradrag 2026 DKK 54,100; beskæftigelsesfradrag 12.75% max DKK 63,300; jobfradrag 4.5% above DKK 235,200 max DKK 3,100
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.