Denmark

The employment deduction is raised to a maximum of 63,300 Danish kroner (DKK) in 2026. Compared to the maximum deduction of 55,600 DKK in 2025.

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 2026, a 27% tax rate applies on the first DKK 79,400 of share income and a 42% tax rate applies on share income exceeding DKK 79,400. From 2027, the progression threshold will be raised further.

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

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. In 2026, the state income tax will consist of four layers: bottom tax at 12.01% on personal income above the personal allowance; middle tax at 7.5% on personal income above DKK 696,956 before AM-tax (with positive net capital income above the capital base also included); top tax at 7.5% on personal income above DKK 845,543 before AM-tax; and top-top tax at 5% on personal income above approximately DKK 2,818,152 before AM-tax.

Furthermore, an additional employment deduction is introduced for seniors who are 1–2 years from the state pension age, to encourage continued participation in the labour market.

Furthermore, children and young people will no longer pay the labour market contribution on their income until they turn 18.
See below for an overview of the Danish tax rates for 2026.