The Danish Tax Authority has opened its preliminary income declaration system for public access. This affects approximately 5.4 million citizens who can now review and adjust their expected incomes and deductions. The system opened on Tuesday morning, marking the start of the annual tax planning season.
Senior citizens approaching retirement age face particular importance in this year's declarations. Those within five years of the national pension age must pay special attention to new employment deductions. A senior employment deduction takes effect next year, offering additional tax benefits for older workers.
Bettina Brask, a wealth economist at Jyske Bank, emphasized the need for accuracy. She said in a statement that seniors must report their income correctly to avoid claiming excessive deductions. The deduction amounts to 1.4 percent of employment income up to 6,100 kroner maximum.
The government expands this senior benefit through upcoming finance legislation. The eligibility window widens from two to five years before pension age. The deduction amount will gradually increase through 2030 as part of the phased implementation.
Ulrick Junge, deputy director at the Tax Authority, explained the policy motivation. He said officials designed the measure to help retain experienced workers in the labor market. The government and its agreement partners specifically targeted senior workforce participation.
For 2026, the tax relief reaches up to 7,950 kroner for those within two years of pension age. Workers three to five years from retirement could save up to 9,500 kroner. These amounts reflect the government's commitment to keeping seniors economically active.
Major tax reforms also take effect next year, replacing the current top tax system. Three new tax brackets will emerge: a middle tax, new top tax, and super top tax. Most Danes will keep more of their salary under this new structure.
Junge clarified the practical implications for taxpayers. He said most people in the middle and top tax brackets will pay slightly less. Only the super top tax group, comprising several thousand high earners, will pay more.
The super top tax applies to personal incomes exceeding 2,592,700 kroner after labor market contributions. These top earners pay five percent on income above this threshold. The government clearly targets wealth redistribution through this progressive structure.
Young workers under 18 receive their own tax break starting in 2026. They no longer pay labor market contributions on their income. This exemption applies until December 31 of the year they turn 17.
Junge provided a practical example of this youth benefit. He explained that a 17-year-old newspaper delivery person previously paid eight percent in contributions. Now they pay nothing, making student jobs more financially rewarding.
The Danish tax system demonstrates careful social engineering through these changes. Policy makers clearly aim to balance workforce participation across generations while maintaining progressive taxation. These adjustments reflect broader Scandinavian approaches to welfare state sustainability.
International readers should note Denmark's comprehensive welfare model requires high tax compliance. The preliminary declaration system helps citizens optimize their tax positions proactively. This contrasts with many countries where taxpayers only reconcile obligations retrospectively.
Expats living in Denmark should pay particular attention to these changes. The Nordic tax systems often surprise foreigners with their complexity and high rates. Understanding these adjustments helps international residents make informed financial decisions.
The government's approach shows clear political strategy. They incentivize senior workforce participation while easing youth employment barriers. Simultaneously, they maintain progressive taxation through the new super top bracket. This balanced approach characterizes Nordic social democratic governance.