On 16 May 2024, the Danish Parliament adopted the new top-top
tax as part of an extensive tax reform for individuals. The change
will take effect from 2026.
On 16 May 2024, the Danish Parliament adopted the new top-top
tax as part of an extensive tax reform for individuals. The change
will take effect from 2026.
In Denmark personal income is taxed according to a progressional
rate. AM-contribution of 8% is calculated and then the remaining
amount is taxed according to the progressional rates. The tax
reform entails that the current top tax rate of 15%, which applies
to income from DKK 640,100, will be replaced with a middle tax, a
top tax and a top-top tax.
Thus, the 15% top tax rate will be substituted with a middle tax
rate of 7.5% for income of DKK 640,100 and an additional top tax of
7.5% for income from DKK 776,500 up to DKK 2,588,300 (all
thresholds before AM-contributions) (2024-amounts).
