How pay after tax works in Denmark

Denmark starts by taking an 8% labour market contribution (AM-bidrag) off gross pay, then charges income tax on what is left. That income tax is mostly municipal, set by your kommune, alongside a national bottom-bracket tax and, for members, church tax. A personal allowance (personfradrag) is given as a credit against the tax rather than as a tax-free band.

Higher earners pay additional national taxes, and a 2026 reform reshaped the top of the scale into middle, top and a new top-top bracket. Work-related deductions reduce the base for the municipal tax. The calculator applies AM-bidrag, the municipal and national taxes, the personal allowance and the deductions for your municipality.

What this calculator works out

  • Labour market contribution (AM-bidrag) of 8%
  • Municipal tax and the national bottom-bracket tax
  • The 2026 middle, top and top-top brackets for higher earners
  • The personal allowance and work deductions, and optional church tax