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Pension tax

As of 1 January 2019 our pensions are progressively taxed at a rate between 30% and 40% according to your annual income.  At first, the pension is taxed at the rate of 40%, and then the difference is settled at the end of the tax year.

Tax table

The table below shows the pension tax rate according to annual income.

Your annual income is over:but less, or equal to:the tax rate is (%):
DKK 0DKK 235,00030.0
DKK 235,000DKK 240,00030.5
DKK 240,000DKK 245,000 31.0
DKK 245,000 DKK 250,000 31.5
DKK 250,000 DKK 255,00032.0
DKK 255,000DKK 260,00032.5
DKK 260,000DKK 265,00033.0
DKK 265,000DKK 270,00033.5
DKK 270,000DKK 275,00034.0
DKK 275,000DKK 280,00034.5
DKK 280,000DKK 285,00035.0
DKK 285,000DKK 290,00035.5
DKK 290,000DKK 295,00036.0
DKK 295,000DKK 300,00036.5
DKK 300,000DKK 305,00037.0
DKK 305,000DKK 310,00037.5
DKK 310,000DKK 315,00038.0
DKK 315,000DKK 320,00038.5
DKK 320,000DKK 325,00039.0
DKK 325,000DKK 330,000 39.5
DKK 330,000 40.0
Pension tax before and after 1 January 2012

Prior to 1 January 2012, the pension was not taxed at collection. Instead, the pension was taxed at payment. Therefore, it is always necessary to distinguish between the pension collected before and after 1 January 2012, as the pension collected before 1 January 2012 will have to be taxed at payment.

Are you self-employed or have a foreign employer?

If you receive your income as B-income, for example if you are self-employed or if your employer is foreign, you must mention your pension savings on your tax return. The pension tax will then be added to the annual tax statement.