Denmark income tax

Denmark tax calculator

Enter your income to estimate what you would pay in Denmark, as an employee or running your own company, and see the best-value cities. Get the full breakdown plus a vetted advisor by email.

How much is income tax in Denmark?

Denmark taxes personal income at rates up to 55.9%. Worldwide income; top marginal rate around 55.9% (a new top band raises it to 60.5% on very high income from 2026).

Compiled by MyNomadWorld for Denmark and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.

Capital gains, wealth & property tax

• Capital gains: Share income 27% up to DKK 67,500 (2025), 42% above; other capital income up to ~42%
• Wealth tax: No net wealth tax in Denmark

Inheritance & gift tax in Denmark

Estate/inheritance duty (boafgift): 15% to close family above tax-free allowance (~DKK 349,500 in 2025); additional 25% surcharge for distant heirs (total ~36.25%) Spouse fully exempt; children/direct descendants 15% above the allowance

Corporate tax & VAT

The standard corporate profits tax is 22%.

How to become a tax resident of Denmark

Residence (home available and used) or continuous stay >6 months. Worldwide income taxed.

Cost of living & lifestyle

Cost of living is about 92% of the US level, with average purchasing power near $85k (PPP). Pick a city below to see its monthly climate and cost.

Banking in Denmark

You will want a local or multi-currency account for rent, bills and getting paid. See our guide to the best banks in Denmark.

For receiving income and moving money the day you arrive, Wise lets you hold and convert 40+ currencies and get paid like a local. Open a free Wise account →

Wise link is an affiliate link; we may earn a commission at no cost to you.

Climate & cost by city

Average monthly temperature (°C) and rainfall. Climate: Open-Meteo ERA5; cost of living: World Bank PPP (same-year pairing), omitted where unavailable.

Denmark tax treaties

Denmark maintains around 80 double taxation treaties in force. They generally follow the OECD Model Convention and reduce withholding tax on cross-border dividends, interest and royalties, so the same income is not taxed twice when you move, invest or earn across borders. That is a broad network, useful for internationally mobile earners and investors.

Major treaty partners

Chips with a link open the full withholding-tax detail for that treaty pair.

Approximate size of the DTA network; confirm the specific treaty and its terms before relying on it.

Denmark tax treaty guides

Detailed double-tax-treaty guides (withholding rates on dividends, interest and royalties) are available for 27 of Denmark's partners:

Argentina · Armenia · Azerbaijan · Bangladesh · Brazil · China · Egypt · Georgia · Ghana · India · Indonesia · Kenya · Mexico · Morocco · North Macedonia · Pakistan · Philippines · South Africa · Sri Lanka · Tanzania · Thailand · Tunisia · Uganda · Ukraine · Venezuela · Vietnam · Zambia