Odder Municipality has been granted permission to raise its municipal income tax, and Mayor Lone Jacobi is proposing a rise of half a percentage point from the current 25.1 percent, pointing to rapid population growth.
As DR reported on September 11, 2026, Odder Kommune has received approval from the Ministry of Economic Affairs and the Interior to lift municipal tax revenue. The approval covers an increase of up to just under 37 million kroner.
Mayor Lone Jacobi of the Social Democrats has built the increase into her draft budget. Under the proposal, the local rate would rise by 0.5 percentage points from 25.1 percent, meaning residents of the East Jutland municipality face paying more tax next year.
Growth in residents cited as the reason
Jacobi links the proposed increase directly to the number of people moving to Odder. According to DR, she says population growth will continue in the coming years, and that adjusting the tax is necessary to secure the welfare institutions this growth requires.
Odder lies south of Aarhus and has seen new residents arrive from surrounding areas. The mayor’s argument is that schools, daycare and other local services must expand along with the population.
Households in the municipality pay income tax to both the state and the municipality. The municipal share is set locally each year as part of the budget process, within limits agreed nationally.
National rules limit local tax rises
Danish municipalities are required to keep local taxation stable when viewed as a whole. If the total rises, they face a collective reduction in the state block grant, DR notes.
That mechanism means one municipality’s decision can have consequences for others. For that reason, Odder is normally reluctant to apply for permission to raise the kommuneskat, according to DR. Jacobi says that this year it is necessary.
Municipalities that want to increase their tax rate must apply to the ministry, which distributes a limited national quota. Odder’s application has now been approved, giving the municipality room of just under 37 million kroner in additional revenue.
The increase is still a proposal at this stage. It forms part of the mayor’s budget proposal for the coming year, which the municipal council must debate and adopt before it can take effect.
Danish municipal budgets for the following year are normally finalized in the autumn. If the council backs the proposal, Odder’s municipal tax rate would rise to 25.6 percent.
DR’s report does not indicate that other parties in Odder have publicly stated a position on the proposed increase. No further details on the spending plans behind the budget proposal were given in the report.
