High Earners Gain Most from Denmark's New Tax Agreement

Higher income households in Denmark will gain the most from a new tax deal. The Danish government reached this agreement with the Danish People's Party. Middle earners will also receive annual tax relief under the plan.

Calculations come from the Ministry of Taxation and Growth. An executive family with two children could gain 15,650 Danish kroner each year. This full financial gain will take effect by 2030. In contrast, a family on social assistance will gain 1,350 Danish kroner annually.

Consumer economist Camilla Schjølin from PFA called high earners the big winners. The deal removes two taxes on higher incomes. It lowers corporate tax from 22 percent to 19 percent. It also improves terms for investing in stock shares.

About 620,000 workers pay the intermediate income tax. They could see annual tax cuts of up to 10,500 Danish kroner. The ministry expects income inequality to rise by 2030. Think tank economist Mia Amalie Holstein said the deal prioritizes economic growth.

The agreement also lowers petrol and diesel duties in 2027. This temporary change aims to help lower paid drivers. However, wealthier households may face later limits on interest deductions. A new inheritance tax could also raise costs for wealthy families later. The report was originally published by CPH Post.