Below is a concise overview of the most important changes affecting taxes, pensions, investments, expat rules, and household costs in 2026. The list is not exhaustive but focuses on changes that you want to be aware of to optimise your taxes.
Income Tax (Indkomstskat)
New income tax structure
In 2026, Denmark introduces a redesigned income tax structure with four marginal tax levels instead of the previous two.
Previously, your income was subject to bundskat, and if you earned above a certain threshold, you paid topskat of your income above that threshold. Now, we have bundskat, mellemskat, topskat and top-topskat, creating a more graduated progression across income levels.
Income tax thresholds in 2026
| Tax level | Applies on salary above (after AM-bidrag) | Rate |
|---|---|---|
| Bundskat | 54,100 kr. | 12.01% |
| Mellemskat | 641,200 kr. | 7.5% |
| Topskat | 777,900 kr. | 7.5% |
| Top-topskat | 2,592,700 kr. | 5% |
Source: skat.dk
In comparison, in 2025, topskat applied above 588,900 kr. after AM-bidrag at a rate of 15%.
What this means for you
As usual, you pay each tax rate only on the income within the respective bands. For example, if you earn 800,000 kr. after AM-bidrag, you pay:
- 0% on the first 54,100 kr. (that’s the personal allowance (personfradrag))
- 12.01% on income between 54,100 kr. and 641,200 kr.
- 7.5% on income between 641,200 kr. and 777,900 kr.
- 7.5% on income between 777,900 kr. and 800,000 kr.
To that, you need to add municipal and church taxes, which vary depending on where you live. These taxes apply to your entire taxable income (after AM-bidrag).
If you used to pay topskat, you will likely pay less taxes this year because the former topskat has been split into two smaller brackets. Higher income earners will see a more significant reduction in their taxes due to the introduction of the top-topskat at a lower rate than the previous topskat.
Pension contributions & tax deductions
| Pension type | 2026 Limit | 2025 Limit |
|---|---|---|
| Aldersopsparing (more than 7 years to retirement) | 9,900 kr. | 9,100 kr. |
| Aldersopsparing (less than 7 years to retirement) | 64,200 kr. | 61,200 kr. |
| Ratepension & ophørende livrente | 68,700 kr. * | 65,500 kr. * |
Source: skat.dk
* This is not a limit to how much you can contribute to these pensions. In Denmark, you get a full tax deduction on pension contributions (to ratepension and ophørende (fixed term) livrente) up to 68,700 kr. per year (2026). You are free to add more to your pension, but contributions above this limit do not yield a full tax deduction. You do get some tax deduction on contributions above this limit.
It’s also important to note that regardless of whether it is your employer(s) contributing via your salary or you making personal contributions, this is the total maximum per person per year.
Investment & Savings Accounts
Limits to deposits in investment accounts
| Account | 2026 Limit | 2025 Limit |
|---|---|---|
| Aktiesparekonto | 174,200 kr. | 166,200 kr. |
Source: skat.dk
Aktieindkomst
Aktieindkomst is still taxed the same way as in 2025, but the new progressionsgrænse is 79,400 kr. in 2026 (up from 67,500 kr. in 2025). This means that the first 79,400 kr. of your aktieindkomst is taxed at 27%, and any amount above that is taxed at 42%.
For married couples, the threshold is doubled to 158,800 kr.
Source: skat.dk
Money gifts
If you want to give money as a gift to someone, be aware that there is a limit to how much you can give tax-free each year.
| Recipient Type | 2026 Limit | 2025 Limit |
|---|---|---|
| Children or stepchildren and all their descendants, parents, cohabiting partner, foster children, deceased children’s and stepchildren’s spouses, grandparents and parents-in-law | 80,600 kr. | 76,900 kr. |
| Children-in-law | 28,200 kr. | 26,900 kr. |
Source: skat.dk
Final notes
I have linked to the official skat.dk pages for each section, where you can find more details and information about these changes. I purposely link to the Danish pages, as you’re likely to hear and refer to these words in Danish, but there is a button to switch to English on those pages.
You are new to Denmark and a lot of those terms are not familiar to you? I am planning on creating a glossary explaining some of the most common Danish tax and finance terms.