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.
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 0 | DKK 235,000 | 30.0 |
| DKK 235,000 | DKK 240,000 | 30.5 |
| DKK 240,000 | DKK 245,000 | 31.0 |
| DKK 245,000 | DKK 250,000 | 31.5 |
| DKK 250,000 | DKK 255,000 | 32.0 |
| DKK 255,000 | DKK 260,000 | 32.5 |
| DKK 260,000 | DKK 265,000 | 33.0 |
| DKK 265,000 | DKK 270,000 | 33.5 |
| DKK 270,000 | DKK 275,000 | 34.0 |
| DKK 275,000 | DKK 280,000 | 34.5 |
| DKK 280,000 | DKK 285,000 | 35.0 |
| DKK 285,000 | DKK 290,000 | 35.5 |
| DKK 290,000 | DKK 295,000 | 36.0 |
| DKK 295,000 | DKK 300,000 | 36.5 |
| DKK 300,000 | DKK 305,000 | 37.0 |
| DKK 305,000 | DKK 310,000 | 37.5 |
| DKK 310,000 | DKK 315,000 | 38.0 |
| DKK 315,000 | DKK 320,000 | 38.5 |
| DKK 320,000 | DKK 325,000 | 39.0 |
| DKK 325,000 | DKK 330,000 | 39.5 |
| DKK 330,000 | 40.0 |
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.
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.