Denmark Income Tax Rates for 2023

Denmark Income Tax Brackets

Denmark has a bracketed income tax system with two income tax brackets, ranging from a low of 3.67% for those earning under kr389,900 to a high of 18.67% for those earning more then kr389,900 a year.

How does the Denmark Income Tax compare to the rest of the world?

Denmark has one of the lowest income taxes in the world, charging a maximum income tax of 18.67%. Countries with similar tax brackets include Slovak Republic with a maximum tax bracket of 19.00%, Estonia with a maximum tax bracket of 21.00% and Norway with a maximum tax bracket of 24.55%. Keep in mind that our ranking measures only nationwide income taxes, and does not account for local income taxes at state, province, or municipal levels.

Maximum Income Tax	Income Tax Allowance	World Tax Rank
18.67%	kr1,574 ($0 USD)	32nd of 34

What is the Denmark Income Tax?

Denmark's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of Denmark. Failure to pay, or underpayment of, the Denmark income tax can result in high fees, fines, or jail time.

In addition to Denmark's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes.

Denmark Income Tax Allowance

Denmark provides most taxpayers with an income tax allowance of kr1,574, which can be kept as a tax-free personal allowance. Denmark's tax credit is a basic wastable tax credit, non-tapered, available to all (single) taxpayers without dependents.

A tax credit is a fixed amount of money that may be kept by taxpayers without paying any income taxes. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated.