The government and Dansk Folkeparti have agreed a tax deal that abolishes the 7.5 percent mellemskat and the 5 percent toptopskat, cutting income tax for people earning more than about 58,000 kroner a month.
The agreement was presented on Thursday, November 12, at 11:30, and the income-tax elements were detailed by TV 2. Both the middle tax and the top-top tax are set to disappear over the coming years.
Camilla Schjølin, private economist at PFA Pension, told TV 2 that the people paying mellemskat and toptopskat today are among the big winners. PFA has calculated what the two abolitions are worth for individual earners.
What the two abolished taxes are worth
The mellemskat is currently paid on annual income between 641,200 kroner and 777,900 kroner, measured after labor market contribution. Everyone above 641,200 kroner will save something, and anyone above 777,900 kroner gets the full annual saving of 10,250 kroner, according to the PFA figures reported by TV 2.
The toptopskat applies to annual income above 2,592,700 kroner after labor market contribution. On an income of 2.7 million kroner, the saving is 5,365 kroner a year, on top of the 10,250 kroner from the mellemskat. The Skatte- og Vækstministeriet has previously stated that 619,000 people would receive tax relief if the middle tax is abolished.
The two measures take effect on different timetables. TV 2 reports that the abolition of the toptopskat is introduced in 2028 and is expected to cost the state 500 million kroner a year. The mellemskat is phased out gradually, costing 300 million kroner in 2027, rising to 2.2 billion kroner in 2028 and 2.4 billion kroner in 2029 and 2030.
Why the agreement landed this week
Removing the middle and top-top taxes was already part of the four-party government’s policy programme of June 2, 2026, as reported by The Local. Dansk Folkeparti’s votes were still needed, and DR reports that a cut in petrol and diesel duty of about two kroner per liter in 2027 was the price of that support.
DR adds that the top-top tax is removed in one step, while the middle tax and the corporate tax cut are phased in over several years. Tax Minister Jakob Engel-Schmidt wrote on X that the parties had agreed to cut taxes by 11 billion kroner, as reported by TV 2 Kosmopol.
What the income-tax changes mean for foreign workers in Denmark
Danish income taxes are built in layers on top of each other, and the thresholds are set in kroner, not by nationality or residence permit type. The mellemskat and toptopskat brackets cited by TV 2 are measured after the 8 percent labor market contribution, known as arbejdsmarkedsbidrag, is deducted. A tax calculator can show where a given gross salary falls relative to those thresholds.
For foreign residents taxed under the ordinary Danish rules, the practical effect depends entirely on salary level. Based on the thresholds TV 2 reports, an employee needs more than 641,200 kroner a year after labor market contribution to see any benefit from the mellemskat being removed, and the full 10,250 kroner only arrives once the tax is gone in 2029. Nothing changes in a current paycheck, since the phase-out starts in 2027 according to the cost figures reported by TV 2.
