The Danish Tax System
In Denmark, we follow the principle that all citizens use the public sector in some way, and thus all citizens must help pay for it.
The tax funds are used to pay for the different expenses that Danish society has, such as welfare benefits, state pension, child benefits and public institutions, such as schools, hospitals, libraries and the police.
The Danish tax system is progressive. This means that the higher your income, the more taxes you have to pay. In many other countries, citizens pay less tax than in Denmark, but in return, they have to pay to go to school, the hospital, the doctor's, etc.
If you get a Danish residence permit and a civil registration number (CPR number), you will be able to take part in the welfare benefits.
At the Danish Customs and Tax Administration’s website, you can read about:
- The Danish tax system
- Types of tax
- Tax card
- Tax deductions.
Tax card
If you have any income in Denmark, you need to apply for a tax card from the Danish Tax Agency (Skattestyrelsen).
Exactly how much tax you must pay depends on your earnings and the tax deductions and allowances you are entitled to.
If you do not apply for a tax card, your employer will deduct 55 % from your salary.