The top tax threshold is adjusted every year, and in 2023 it will be raised to DKK 568,900. This corresponds to an increase of DKK 16,400 or almost 3% compared to this year. Since 2012, the top tax threshold has increased from DKK 389,900 to DKK 552,500 this year.
The promise provides a tax relief of approximately DKK 2,500 for those who are already above the new limit.
No prospect of large increases in the future
Back in 2012, it was decided that the top tax threshold would be raised significantly over a period of 10 years, which ends this year. Since 2012, the top tax threshold has increased from DKK 389,900 to DKK 552,500 this year.
When the limit for next year is raised by a higher amount, as much as DKK 16,400, it is not due to an extraordinary increase, but because the salary development in 2021 was a lot higher than in previous years.
How much do I have to pay in top tax?
The top tax rate in 2023 is 15%, which applies to all Danish taxpayers. The 15% top tax rate means that the part of your earnings that exceeds the threshold of DKK 568,900 after labor market contributions is taxed with an additional 15%, which is added to your regular income tax. Of course, the size of your earnings determines the total amount you end up paying in tax.
You are also welcome to contact us by phone +45 3929 0800 or write to us buusjensen@buusjensen.dk