Method and sources: Denmark

Every rate and amount comes from an official source.

How we calculate

• We calculate the year’s tax and divide it over twelve months, as on a preliminary assessment. Net pay is gross pay minus the labour market contribution, your own pension, tax and ATP.
• The labour market contribution is 8 % of pay. Bottom-bracket tax is charged on personal income above the personal allowance. Municipal and church tax are charged on taxable income after the employment deduction, the job deduction and the personal allowance.
• Middle-, top- and top-top-bracket tax are charged on personal income after the labour market contribution above their thresholds. The tax ceiling reduces the middle-bracket tax in high-tax municipalities; the reduction comes from the Ministry of Taxation’s overview.
• Net to gross uses the engine itself: a binary search finds the smallest gross that gives the net pay requested.

Official sources

• Personal Tax Act: rates and amounts

  Personal allowance, bottom-, middle-, top- and top-top-bracket tax and the tax ceiling. Checked on October 30, 2026

• Danish Tax Agency: bracket taxes

  The thresholds are stated after the labour market contribution. Checked on October 30, 2026

• Legal guidance: labour market contribution

  The 8 % rate. Checked on October 30, 2026

• Legal guidance: employment deduction

  A deduction of 12.75 % of pay, at most 63,300 DKK. Checked on October 30, 2026

• Legal guidance: job deduction

  4.5 % of pay above 235,200 DKK, at most 3,100 DKK. Checked on October 30, 2026

• Legal guidance: tax ceiling

  When the middle-bracket tax is reduced. Checked on October 30, 2026

• Virk: ATP rates

  The employee’s ATP contribution of 99 DKK a month. Checked on October 30, 2026

• Municipal tax rates 2026 (Ministry of Taxation)

  Municipal tax, church tax and the tax ceiling reduction for every municipality. Checked on October 30, 2026

What we do not cover

• Commuting, trade union and unemployment fund deductions and other deductions.
• Capital income, holiday allowance and other payments on top of the monthly salary.
• Single parents, seniors and people under 18.