Denmark's tax authority reports that two out of three young people fail to check their preliminary income assessments, leading to massive collective overpayments. New data from the Danish Tax Agency (Skattestyrelsen) reveals that only one-third of citizens aged 15 to 25 adjusted their preliminary tax returns in 2024. This inaction resulted in 560,000 young Danes overpaying a combined 2.7 billion kroner in tax last year—an average of 4,900 kroner per person.
"Of course it's nice to get a tax refund when the annual statement comes, but these young people could have had 400 kroner more in their pocket every month instead," said Ulrick Junge, Deputy Director of the Danish Tax Agency. He emphasized that the money could have been spent or saved throughout the year if their information had been updated.
The agency is now taking an unusual step to address the issue. Starting Friday, tax advisors will be on the streets between Nørreport and Strøget in Copenhagen, directly approaching young people to offer help. Similar outreach efforts are scheduled for next week in Odense and Aarhus.
A Systemic Issue of Uncertainty
Junge explained the core problem is not laziness, but apprehension. "When we talk to young people, we find they are often uncertain about their taxes and afraid of making mistakes," he said. "Therefore, we have an important task in helping them get started properly and ensuring they gain a fundamental knowledge about tax that they can build upon as their finances and daily lives evolve." This knowledge gap represents a significant financial literacy challenge for a generation navigating an increasingly complex gig economy.
The preliminary tax return, issued each November, is the tax authority's best estimate of a citizen's income and deductions for the coming year. It is the individual's responsibility to log into the digital system and correct any inaccuracies. For 2025, 5.4 million Danes received a preliminary assessment, including approximately 830,000 young people aged 15 to 25.
The High Cost of Inaction
The 2.7-billion-kroner figure is not just a statistic; it represents real economic impact. For a student working part-time in a Copenhagen café or a retail assistant in Aarhus, an extra 400 kroner monthly could cover a significant portion of a transportation pass, grocery bills, or study materials. This overpayment effectively functions as an involuntary, interest-free loan to the state, depriving young people of liquidity during the year.
This issue is particularly acute during life transitions common to this age group. The Tax Agency highlights that adjustments are crucial when young people shift between education and work, purchase their first home, or earn income through social media or other freelance platforms—all scenarios where the state's automated estimate is likely to be incorrect.
"Their financial lives are dynamic, but their tax assessments remain static if they don't engage," Junge noted. The system, while digital and efficient, requires proactive citizen participation to function optimally. The current data suggests the self-service model is failing a large segment of the young population.
From Digital Walls to City Streets
The decision to deploy advisors to city centers marks a strategic shift from purely digital communication to active, face-to-face engagement. By stationing themselves in high-traffic youth areas like Copenhagen's Strøget and Nørreport, the agency aims to lower the threshold for asking questions. This approach acknowledges that intimidating formalities can be a barrier.
The campaign in Copenhagen, Odense, and Aarhus targets Denmark's three largest urban centers, where many young people study and work. The success of this pilot could determine whether similar outreach becomes a permanent fixture. The goal is to demystify the process and build confidence, turning a source of anxiety into a routine financial admin task.
Broader Implications for Financial Literacy
Economists and youth advocates see the tax overpayment issue as symptomatic of a larger gap in practical financial education. While Danish students receive education in various subjects, the hands-on application of tax systems, deduction optimization, and personal finance management is often learned through family or personal experience—creating unequal starting points.
"This isn't just about tax refunds; it's about economic empowerment and participation," said a Copenhagen-based financial advisor who works with young entrepreneurs. "When you don't understand the basic systems that govern your income, you are at a disadvantage. That 400 kroner a month is a tangible lesson in the value of engagement."
The gig economy adds another layer of complexity. A young person earning money from YouTube, freelance graphic design, or seasonal festival work must understand how to report this variable income. Failing to do so can lead to underpayment and subsequent debt, or—as the current data shows—significant overpayment.
A Call for Systemic Clarity
Some critics argue the burden should not fall solely on young citizens. They question whether the system itself could be more intuitive or whether the annual preliminary statement could include clearer, more targeted warnings for common life events experienced by youth. Could the digital platform use simpler language or more prominent alerts for those under 25?
The Tax Agency maintains that the core information is accessible but acknowledges the need for better guidance. Junge's statement underscores a "fundamental knowledge" mission, suggesting this campaign is the first step in a longer-term strategy to improve early adult financial capability.
For now, the immediate plan is direct intervention. As young Danes walk through the heart of Copenhagen this Friday, they will encounter not just shops and cafes, but representatives of the state offering to sit down and explain their finances. The question is whether this novel approach can convert uncertainty into action and turn billions in overpaid tax back into the pockets—and control—of a new generation.
Will street-level tax advice become a new normal in Danish cities, or is this a temporary fix for a deeper educational deficit? The answer may determine the financial confidence of Denmark's future workforce.