One in four Danes will owe money to the Danish Tax Agency this year, and time is running out to fix your tax information before the final payroll for December is processed.
Thousands risk unexpected tax bills
Roughly one in four Danes will owe back taxes when their 2025 annual tax statement arrives early next year. According to new data from Skatteguiden, which has nearly a million users, many taxpayers still have time to correct their preliminary tax statements before it is too late.
Those who receive advance-paid salaries need to act fast. Once their last paychecks are processed on December 1, it becomes impossible to make changes that affect the 2025 income year. People with postpaid salaries have until mid-December. On average, those who owe the government will need to pay back about 7,973 Danish kroner.
Hidden debt adds up fast
Many Danes are unaware that unpaid taxes from 2025 will accrue interest from January 1, 2026. If you suspect you will owe money, adjusting your tax deductions now can prevent a sharp increase in your final bill. Missing the December deadline can cost the average taxpayer an additional 422 kroner once interest is added.
In 2025, the interest rate on unpaid taxes was 5.3 percent, and it cannot be deducted on your tax return. The official rate for 2026 has not yet been set.
Because of that, tax experts recommend reviewing your income, deductions, and pension contributions before the end of December. Making an additional payment to your pension can be an effective way to balance what you owe, since those contributions offer tax deductions you can still claim until December 31.
If you miss that window, a voluntary payment to the Danish Tax Agency before your statement is finalized can reduce or eliminate the outstanding balance. However, this requires estimating your debt accurately, which may be difficult without updated records.
How to avoid losing money
While many Danes will owe money this year, others are due refunds. Even so, experts caution against leaving excess tax payments sitting in the government’s account. The interest on overpaid tax is just 0.6 percent, which means you earn far less than you would with virtually any other form of savings.
For employees expecting refunds, adjusting their tax deduction forms so that refunds are paid with the December salary is the smartest move. Bringing your tax account as close to zero as possible generally offers the best outcome. After all, as several financial advisors often note, “tax is not a good bank.”
Given the complexity of Danish taxation, using a professional advisor can be helpful for both locals and foreigners working in Denmark. Many specialized services can guide workers through deductible categories, income adjustments, and the review of tax payments to ensure they are accurate before the system closes in December.
Meanwhile, for families with multiple income sources, rental income, or varying deductions, even minor calculation errors can result in noticeable extra payments once the tax statement arrives in March. Because the tax authority calculates interest automatically, any delay in correcting underpaid amounts means losing money unnecessarily.
Final reminders before year’s end
In practice, taxpayers only have a few weeks left to make changes that affect the 2025 result. Once the final payroll runs for December, the Danish Tax Agency locks the preliminary tax records for the year, and all unpaid balances start accumulating interest at the start of January.
Naturally, this makes December the most critical time of the year for Danish taxpayers. Checking employer information, confirming deductions, and making sure pension and investment contributions are correctly entered can make a difference of hundreds or even thousands of kroner.
For most Danes, the goal is simple: adjust in time so the balance ends as close to zero as possible. Those expecting a refund should claim it sooner, while anyone likely to owe should fix it before interest charges pile up. With just weeks remaining, a little attention could save an average of more than 400 kroner.
Sources and References
The Danish Dream: Stop Overpaying Danish Tax – Complete Guide to Deductibles
The Danish Dream: Best Tax Advisor in Denmark for Foreigners
TV2: Hver fjerde dansker står til skattesmæk – og snart lukker opgørelsen
