All employers are required to withhold and remit to the government the withholding tax on wages and other payments subject to withholding for employees. In the same way, withholding tax must be deducted from the calculated remuneration of those who work in their own business. The withholding consists of income tax and municipal tax and is a prepayment on the assessment of public taxes according to individuals' tax returns. Income tax goes to the national treasury and the municipal tax to the appropriate municipality.
All further information about the tax system can be found on the website. RSK
Individuals' Withholding Tax Rate 2026
| Tax bracket 1: On income from 0 – 498,122 kr. | 31,49% |
| Tax bracket 2: For income 498,123 - 1,398,450 kr. | 37,99% |
| Tax Bracket 3: On income over 1,398,450 kr. | 46,29% |
| Tax rate for children (born in 2011 or later) on income over 300,000 kr. per year | 6% |
| Personal allowance per month | $3,299.00. |
| Personal exemption per year | 869,898 kr. |
More information here
Personal allowance
Everyone who has reached the age of 16 during the tax year and is domiciled in the country is entitled to a personal exemption. The same applies to those who have the right to maintain a tax home in the country despite residing abroad for the purpose of education or illness. For those who turn 16 during the tax year, the full personal allowance is calculated for the entire year.
More information here
Tax return
A tax return is a declaration of all the income, assets, and liabilities you had during the past tax year. It is important that everyone files their return. The tax authority needs accurate information in order to calculate taxes and benefits.
Detailed Instructions Information about tax returns can be found on the tax authority's website.