A temporarily raised commuter tax deduction expires on 31 December, and an accountancy calculation says a long-distance driver could be about 1,000 kroner worse off in 2027 despite cheaper fuel.
TV 2 reported on Thursday, 12 November, that the specially raised commuter deduction disappears at the turn of the year. The deduction, known as befordringsfradrag or kørselsfradrag, was introduced in summer 2026 to offset high petrol and diesel prices.
It expires one day before fuel becomes cheaper. The tax deal presented by the government and Dansk Folkeparti on Thursday cuts petrol and diesel duty by about 2 kroner per liter in 2027.
Henning Boye Hansen, chief consultant at the audit firm BDO, calculated the effect for TV 2. A commuter driving 30,000 kilometers a year in a diesel car, of which 22,000 kilometers are between home and work, gains around 3,000 kroner from cheaper fuel in 2027. That assumes 200 working days of 110 kilometers and average consumption of 20 kilometers per liter.
The same commuter saved just under 4,000 kroner in tax in 2026 thanks to the raised deduction rates. According to Boye Hansen, the net result is therefore a loss of about 1,000 kroner. As stated by the BDO consultant, people who drive many kilometers for work reasons are not helped by the lower fuel prices.
How the raised rates worked
Per Skattestyrelsen, the summer agreement lifted the ordinary rate by 89 øre per kilometer for up to 120 kilometers driven. The rate above 120 kilometers rose by 45 øre, and commuters in the designated outlying municipalities, yderkommuner, got an increase of 98 øre.
TV 2 notes that a commuter living in a yderkommune with a job 100 kilometers away receives a tax reduction of 10,000 kroner over 220 working days. The same journey without a yderkommune address gives just under 6,000 kroner. The loss from the expiry is therefore larger in those municipalities.
The Skatte- og Vækstministeriet says the duty cut applies to both fuels for all of 2027 and is temporary. The ministry argues the cut helps drivers who do not benefit from the commuter deduction. Ritzau, via TV2 East, reports the wider package also abolishes the middle tax and the top-top tax and is worth around 11 billion kroner by 2030.
Finance minister questions the figures
Finance Minister Peter Hummelgaard told TV 2 that he has not seen the calculation and has difficulty recognizing the numbers. He added that the government is always ready to do more if crises continue. Anders Vistisen, finance spokesperson for Dansk Folkeparti, said his party would vote for an extension and would prefer to make both measures permanent.
On the timing, Ritzau, via Faglig Senior, reports that the government negotiated with the centre-right parties because Enhedslisten and Alternativet would not support its tax plan.
What the expiring deduction means for foreign residents who commute
The befordringsfradrag is a deduction from taxable income for daily travel between home and workplace, and it applies regardless of nationality or passport. Skattestyrelsen said in summer 2026 that commuters could see the effect of the raised rates from their next salary payment by adjusting their figures, which affects how much is withheld in income tax during the year. A deduction lowers taxable income rather than paying out cash.
For internationals who commute long distances by car, the concrete point from the BDO calculation is that the 2027 fuel saving may be smaller than the tax benefit lost on 1 January. Those living in a yderkommune stand to lose more, because their rates were raised furthest. Whether the raised rates will be extended is not decided, and both Hummelgaard and Vistisen have said they are open to further steps for commuters who are driving in Denmark.
