As a rule, it is not particularly exciting when the Danish Tax Agency opens the preliminary tax assessment, which provides an overview of next year’s tax payments.
But this year, it will be interesting for many Danish workers to closely examine the figures, which will be released on November 11.
In 2026, a significant change to the tax system will take effect, offering most people a noticeable tax reduction—especially if you are among those who paid the top tax rate this year.
Learn more about the new tax system below.
What’s new?
The current top tax will be abolished. Instead, there will be two new levels: medium tax and top-top tax.
This means the tax system will consist of four tiers: basic tax, medium tax, top tax, and top-top tax.
What do the new rules mean for me?
It depends, of course, on how much you earn.
The largest group to benefit will be those with a monthly salary between DKK 58,000 and 70,500.
If you are in this group, you will avoid the 15 percent top tax and instead only pay the new medium tax at a rate of 7.5 percent.
Technically speaking, your marginal tax rate in 2026 will drop from 56 percent to 49 percent if you are in this income range.
Going forward, only individuals with a monthly salary of over approximately DKK 70,500—about 285,000 people—will pay the 15 percent top tax.
On the other hand, it will be more expensive if you belong to the highest earners, who will be subjected to the new top-top tax of 5 percent on the portion of income that exceeds approximately DKK 235,000 per month before the labor market contribution.
However, because this group, expected to comprise fewer than 5,000 people, will also benefit from the higher threshold for the top tax, they will effectively need to earn over DKK 3 million annually before feeling the impact of the new top-top tax.
What if I’ve never paid the top tax?
You will notice an increase in the employment allowance.
Next year, it will be 12.75 percent of your personal income before the labor market contribution, but no more than DKK 63,300.
This means that if you earn at least DKK 41,400 per month, you will receive the maximum allowance, leading to a tax reduction of about DKK 2,000 next year compared to 2025.
What else is happening?
Seniors close to the state pension age will receive an extra reward for staying at work.
Initially, the special employment allowance for seniors was only meant for those aged 65 and 66—those one or two years away from retirement—and was capped at DKK 6,100 annually.
But in the 2026 budget, which has just been finalized, the scheme is expanded to include everyone within five years of their state pension age. Additionally, the allowance is increased to up to DKK 37,000 annually.
This translates to over DKK 9,000 extra in hand for each year you refrain from ’self-retiring,’ meaning living off your savings before reaching the state pension age. You don’t need to do anything—the allowance will automatically appear on your preliminary tax assessment.
What if I invest?
Speaking of savings, the threshold for taxation on dividends and profits from stock sales will also be raised in 2026.
You will only pay the high rate of 42 percent on stock income tax when the profit exceeds DKK 79,400. Currently, the cap is DKK 67,500. For amounts below DKK 79,400, the tax rate is 27 percent.
A couple with stock income of at least DKK 158,800 next year will save DKK 3,600 in taxes.
What should I do when the preliminary tax assessment arrives?
Check if the figures are correct—owing taxes can be costly. The penalty interest on back taxes this year was 5.3 percent, while you only received 0.6 percent interest for overpaying.
Pay particular attention to whether the interest on any loans—and thus your interest deduction—has been reduced more than the Danish Tax Agency assumes. And if you bought a home this year, ensure it is listed on the preliminary tax assessment for both this year and next year so property taxes are correctly levied.
Also, verify whether your salary and travel deductions look accurate.
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