Denmark

The employment deduction is raised to a maximum of 55,600 Danish kroner (DKK) in 2025. The employment deduction will be further increased in 2026 to DKK 58,200.

Furthermore, the taxation of share income is eased by raising the threshold for when the higher tax rate of 42% on share income must be paid instead of 27%. In 2025, a 27% tax rate applies on the first DKK 67,500 of share income and a 42% tax rate applies on share income exceeding DKK 67,500. From 2026, the progression threshold will be increased to DKK 75,800, and from 2027, the threshold will be raised further.  

For married couples living together at the end of the income year, the thresholds are doubled.

In 2025, a new green household service deduction has been introduced, aimed at “green renovations.” This includes, for example, energy-saving improvements and window replacements. The deduction amounts to DKK 8,600.

Furthermore, more individuals will be eligible for the special Danish expatriate tax regime from 2026, as the salary requirement is being lowered. The monthly salary requirement will be reduced from DKK 78,000 to DKK 63,000 as of 2026, although the amount is stated in 2025-level terms.

In Denmark, a reform of the current income tax system has also been adopted, taking effect from 2026. The existing Danish top-bracket tax will be replaced by three separate taxes: a new middle-bracket tax, a new top-bracket tax, and a new top-top-bracket tax. See below for an overview of the Danish tax rates for 2026.