Salary Calculator Denmark

Tax Year: 2024 – 2025

If you live in Copenhagen (København) and earn a gross annual salary (Bruttoløn) of 563,664 kr., or 46,972 kr. per month, your monthly net salary (Nettoløn) will be 29,931 kr. This results in an effective tax rate of 36%, as estimated by our Danish salary calculator (Lønberegner).

The following chart outlines your earnings relative to the national average salary and minimum wage in Denmark. These are annual, before-tax figures, calculated assuming full-time employment.

The average salary in Denmark is 46,972 kr. per month before tax, according to the latest data from Statistics Denmark. This translates to an annual gross income of 563,664 kr., for which our salary calculator estimates a monthly net pay of 29,931 kr. (in the Municipality of Copenhagen).

Like other Scandinavian countries, Denmark does not have a government-mandated minimum wage. However, wages in Denmark rarely fall below 140 kr. per hour, which amounts to 22,447 kr. per month before taxes, given the standard Danish work week of 37 hours. In Copenhagen, this translates to a monthly pay of 15,259 kr. after tax.

If you are employed in Denmark, your salary is typically taxed at source. This means your employer calculates the taxes and contributions you owe, taking into account any allowances and credits to which you are entitled. As a result, the amount you receive at the end of each month is your net pay, after taxes.

Anyone liable to taxation in Denmark must obtain a tax card from the Danish Tax Agency. This card is where you provide all the necessary information for calculating your tax burden, as well as any allowances and credits.

In March of each year, you will receive a tax assessment notice (Årsopgørelsen) that lists your income, taxes, deductions, and allowances for the past tax year. It's important to review this assessment and inform the Danish Tax Agency of any discrepancies. If you overpaid on taxes, you are eligible for a refund. Conversely, if you paid too little, you'll need to settle the outstanding amount with the tax authorities.

Our tax calculator includes all taxes and contributions levied on employment earnings in Denmark:

• State tax: The Danish state tax is progressive, with two brackets: the bottom-bracket tax, which applies to all income levels and has a rate of 12.09% in 2024, and the top-bracket tax, which applies only for annual incomes exceeding 588,900 kr. and has a rate of 15%.
• Municipal tax: This tax is levied by the municipality where you live. Unlike the state tax, the municipal tax has a flat rate that is decided by each commune. In 2024, Copenhagen's rate is 23.6%, while the average across Denmark is around 25%.
• Labour market contributions: This is a contribution to the state, covering benefits for unemployment, sickness, maternity/paternity leave, and more.
• Church tax: This is an optional tax with rates that differ slightly across municipalities. Though optional, many Danes choose to pay this tax, supporting the running and maintenance of local churches.

Our calculator also factors in the common tax deductions and allowances available to Danish taxpayers. We cannot cover all of them, since they can vary significantly from person to person, but we have included the main ones:

• Personal allowance: This is a portion of your gross income that is not subject to taxes. It stands at 49,700 kr. per year in 2024 (slightly lower if you are under 18 years of age).
• Employment allowance: A deduction from your taxable income if you are employed or earning a business profit. In 2024, it is set at 10.65% of your income, but has an annual cap of 45,100 kr.
• Job allowance: This allowance is similar to the employment allowance, but it is only applied when you earn over a certain amount. It is currently set at 4.5%, but there is a cap at 2,800 kr. per year.