Danish tax authorities have opened the preliminary income assessment for the coming year, revealing substantial tax changes that will put more money in the pockets of students, middle-income earners, and seniors. The new system introduces significant adjustments to tax brackets and deductions that will affect millions of taxpayers.
The preliminary tax assessment system allows Denmark's 5.4 million taxpayers to adjust their expected income and deductions for the upcoming year. This year's adjustments are particularly important due to the implementation of a new tax structure that replaces the previous system.
Thousands of students across 25 municipalities will now qualify for travel deductions when they have more than 12 kilometers to their educational institutions. This marks a major expansion of the commuter deduction that previously applied only to working adults. Students can now deduct between 2 and 2.5 Danish kroner per kilometer traveled to their schools.
Tax experts emphasize that students should register these deductions immediately in their preliminary assessments. This ensures higher monthly payments rather than waiting for a year-end tax refund. The deduction applies only to days when students physically attend classes, excluding remote study days, illness, or vacation periods.
Senior workers approaching retirement emerge as another major beneficiary group. The government has proposed expanding a special senior deduction to include those with up to five years remaining in the workforce, rather than the current two-year limit. This change could provide up to 9,500 kroner in additional tax savings for approximately 360,000 Danes born between 1960 and 1965.
To qualify for the maximum senior deduction, individuals need to earn approximately 36,300 kroner monthly. This income level allows some seniors to work three or four-day weeks while still qualifying for full benefits, creating more flexibility during their final working years.
The tax bracket restructuring introduces a new 'middle tax' and 'top-top tax,' creating four distinct tax rates. Middle-income earners making between 51,000 and 235,000 kroner monthly will see the most substantial savings, potentially thousands of kroner annually. Meanwhile, the highest earners above 235,000 kroner monthly will face increased tax obligations.
Financial advisors warn that taxpayers near bracket boundaries should carefully assess their positions. Underestimating tax liability could result in unexpected tax bills during the annual settlement. Experts recommend taking a conservative approach and slightly overpaying taxes to avoid year-end surprises.
The tax changes represent the most substantial overhaul of Denmark's tax system in years. The reforms aim to redistribute tax burdens while providing relief to specific demographic groups. The senior deduction expansion is expected to pass parliamentary approval and take effect during the coming year.
Taxpayers should update their preliminary assessments for any life changes including salary adjustments, marital status changes, home purchases, or business ventures. Accurate reporting ensures proper monthly tax payments and prevents settlement discrepancies. The system automatically applies eligible deductions, but taxpayers must ensure their information remains current throughout the year.