Denmark

Individual - Sample personal income tax calculation

Last reviewed - 02 June 2020

The following tax calculation relates to an individual who owns 100% of a property in Denmark with a public Danish cash value of DKK 1,000,000, has an average municipality tax rate, no church tax, and is covered by Danish social security.

Income tax calculation for 2021 (single taxpayer)

Tax computation DKK DKK
Salary 550,000  
Value of free car 50,000  
ATP (social security) (1,136)  
Labour market tax (47,909)  
Personal income   550,955
     
Interest income 20,000  
Interest expenses (100,000)  
Capital income   (80,000)
     
Transportation expenses (10,200)  
Employment deduction (40,600)  
Job allowance (2,600)
Non-interest related deductions   (53,400)
     
Taxable income   417,555
Local tax 104,263  
Base tax 66,721  
Top tax 923  
Tax value of personal allowance and interest compensation (21,316)
Property value tax 9,200  
Total tax   159,790
Labour market tax (AM-tax)   47,909
Total taxes inclusive of labour market tax (AM-tax)   207,699