Significant change in top tax rate from 2026 - what does it mean for you?

From January 1, 2026, the Danish top tax rate will change significantly. The current model will be abolished and replaced by three new tax levels. This means that many wage earners will experience lower marginal tax rates - especially those around the current top tax threshold.

Here's an overview of what's changing - and what it means for you as an ordinary employee.

Three new tax levels

The reform divides the current top tax into three steps:

Middle tax of 7.5% on income over DKK 641,200
Top tax of another 7.5% on income over DKK 777,900
Top top tax of 5% on income over DKK 2.5 million.

The limits apply before labor market contributions and are given in 2026 levels.

What does the change mean for you?

For the vast majority of employees, this is a reduction in marginal tax rates.

If you have an income between approximately DKK 641,000 and DKK 777,900, the marginal tax rate drops by around 7 percentage points.

This means that you get a little more out of working extra - for example, taking overtime, a bonus or a pay rise.

For incomes above 777,900 DKK, the marginal tax rate remains largely unchanged.

If you earn more than DKK 2.5 million, an additional "top top tax" of 5% will be introduced.
According to the Danish Ministry of Taxation, around 280,000 Danes will experience a significant tax reduction when the new rules come into force.

A concrete example

A person with an annual earned income of DKK 700,000 will pay approximately DKK 14,000-15,000 less in taxes per year when the reform is fully phased in.

When does it apply?

The change applies from January 1, 2026.
If you're currently close to the top tax threshold, it may be worth checking how the new rates affect your salary, overtime or bonus.

In short

The reform means that more Danes will have lower taxes on their last earned krone.
For most ordinary wage earners, this is positive news - especially if you are just above the current top tax limit.