Denmark Plans to Abolish Middle Tax from 2027

High earners in Denmark could pay less tax from 2027. The government wants to abolish the middle tax called mellemskat. This change could save affected workers about 7,200 Danish kroner each year. Over 619,000 residents currently pay this tax, according to The Local.

The cut applies to anyone earning over 641,000 Danish kroner a year. That equals roughly 53,416 Danish kroner a month. Currently, mellemskat is a 7.5 percent tax. It applies to income between 641,200 kroner and 777,900 kroner annually. Income above that range faces higher top taxes.

People who pay both middle tax and top tax will benefit the most. Tax Minister Jakob Engel-Schmidt said workers just above the limit save little. The tax cut will cost about 2.5 billion Danish kroner.

The government needs support from right-wing parties to pass the plan. The ruling parties hold 82 seats and need 90 seats for a majority. However, right-wing parties usually support tax cuts for higher earners. Negotiation will focus on how to fund the measure before a final vote.