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 2020 (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 (39,400)  
Job allowance (2,600)
Non-interest related deductions   (52,200)
Taxable income   418,755
Local tax 104,479  
Base tax 66,886  
Top tax 2,993  
Tax value of personal allowance and interest compensation (21,252)
Property value tax 10,000  
Total tax   163,106
Labour market tax (AM-tax)   47,909
Total taxes inclusive of labour market tax (AM-tax)   211,015