Denmark plans cuts to student grants and new car tax rules

Denmark announced key proposals for its 2027 budget. These plans will affect students, car buyers, and workers. The government wants to cut student grants for some young people. Students living with parents earning over 710,000 kroner yearly will lose grants. This change affects over 80,000 students living at home.

Graduates will also face stricter rules for unemployment benefits. They must work four hours weekly for 18 months during study. Without this work history, graduates cannot claim full benefits.

Buying an electric car will become more expensive in 2027. The tax exemption on electric cars will expire soon. Cars priced above 366,000 kroner will see higher registration fees.

The government plans to abolish the middle income tax rate. This tax cut applies to yearly incomes between 641,200 and 777,900 kroner. Officials also want to fund free dental care for all adults. Defense spending will increase to 22 billion kroner next year.