Danish Tax Card (Skattekort) Guide

Denmark has a progressive income tax system, and the mechanism that controls how much tax your employer deducts from each payslip is called the skattekort (tax card). Without one, Danish employers are legally required to withhold 55% of your gross salary as a precaution. This is called trækprocent uden skattekort — the withholding rate without a tax card.

Getting your tax card sorted in the first week is not optional. The money is not lost forever — SKAT (the Danish Tax Agency) reconciles everything in your annual tax return — but having 55% withheld while you are setting up your life in a new country is a serious cash flow problem. Do not leave this until later.

What a Tax Card Actually Does

Your skattekort tells your employer two things:

1. Your personal allowance (personfradrag): An amount of income per year that is tax-free. In 2024, this is approximately DKK 49,700. Your employer factors this in when calculating how much tax to deduct.
2. Your withholding rate (trækprocent): The percentage of income above your allowance that should be withheld and sent to SKAT on your behalf. This typically ranges from about 37% to 52% depending on your income level and municipality.

The tax card is not a physical card — it is an electronic record that SKAT sends directly to your employer via the eIndkomst system. You do not hand your employer a piece of paper. They automatically receive your tax information once it is set up.

The Frikort vs the Main Tax Card

Denmark has two types of tax card:

Type	What it means
Frikort (free card)	Your total annual income is expected to be below the personal allowance — meaning zero income tax is deducted from any payment
Skattekort (main card)	Standard income earners — tax is deducted at the calculated withholding rate on income above your allowance

Most employed people get a regular skattekort. The frikort is mainly used for students with very low incomes, people on certain benefits, or those doing small secondary jobs earning under the annual threshold.

If you have a second job or side income (B-income — see below), there is a separate card for that too.

How to Get Your Tax Card

Step 1: Have Your CPR Number Ready

You cannot interact with skat.dk as a registered taxpayer without a CPR number. Get this first.

Step 2: Set Up MitID

Log in to skat.dk requires MitID. Have your MitID app installed and active before attempting this.

Step 3: Log In to skat.dk

Go to skat.dk and select "Log in" (Log på). Authenticate with MitID. You will be taken to your personal tax page.

Step 4: File a Preliminary Income Assessment (Forskudsopgørelse)

This is the key step. The preliminary income assessment is a form where you tell SKAT:

• Your expected annual income from employment
• Any other sources of income (rental income, freelance work, investments)
• Deductions you are entitled to claim

Based on this information, SKAT calculates your withholding rate and personal allowance allocation, and issues your skattekort to your employer.

To file:

1. On skat.dk, look for "Forskudsopgørelse" in your personal tax overview
2. Enter your expected annual salary from your employment contract
3. Enter any other expected income
4. Add applicable deductions (see below)
5. Submit the form

SKAT typically processes this and activates your tax card within 1–2 business days. Your employer should automatically receive the updated rate through the eIndkomst system.

Step 5: Notify Your Employer

After submitting, let your employer's payroll department know you have filed the preliminary assessment. They can check in the eIndkomst system whether your card has been received. If your first payslip is approaching, flag this proactively — some payroll systems do not check for updated tax cards in real time.

Deductions You Can Claim Upfront

When you file your preliminary income assessment, you can include deductions that reduce your taxable income and lower your withholding rate. Common ones for new arrivals:

• Commuting deduction (befordringsfradrag): If you live more than 12km from your workplace, you can deduct a per-kilometre amount for your commute. This is calculated based on distance, not actual transport cost, and applies whether you drive, cycle, or take public transport.
• Trade union membership (fagforeningskontingent): Deductible up to DKK 6,000 per year.
• Unemployment insurance (a-kasse bidrag): Fully deductible.
• Interest payments on loans: Mortgage interest and some personal loan interest is partially deductible.

Do not guess on deductions — under-claiming is common among new arrivals. If you are unsure, SKAT has a helpline (in Danish and English) and a live chat function on skat.dk.

A-Income vs B-Income

Denmark distinguishes between two types of income for tax purposes:

A-income (A-indkomst): Employment income where an employer deducts tax before paying you. This includes salary, wages, holiday pay, and sick pay. Your employer uses your skattekort for this automatically.

B-income (B-indkomst): Income where tax is not deducted at source. This includes freelance fees, rental income, board fees, and some interest income. For B-income, you must pay preliminary tax (foreløbig skat / B-skat) in instalments, or it will be reconciled in your annual tax return (with potential interest on underpayment).

If you have significant B-income, add it to your preliminary income assessment so SKAT can calculate and bill you for the correct instalments throughout the year. Surprises in the annual settlement — when you owe a large sum — are avoidable with accurate preliminary assessment.

What If Your Employer Already Deducted Too Much?

If your employer deducted 55% for your first payslip before your tax card was active, you will get that money back — but not immediately.

When SKAT does your annual tax settlement (årsopgørelse), they compare what was actually withheld against what you owed. If you overpaid, the refund is deposited to your NemKonto, usually in March–April of the following year for the previous calendar year.

If you want a faster resolution, contact SKAT directly and explain the situation. In some cases, they can process a correction mid-year.

The Annual Tax Return (Årsopgørelse)

Every year in March, SKAT publishes your annual tax return on skat.dk. You receive a notification via e-Boks (the government digital post system). Log in to check it.

Most Danish residents simply review the pre-filled return and confirm it. SKAT has access to data from your employer, your bank, and other sources, so most of the form is already populated. You mainly need to:

• Check that income figures are correct
• Add any deductions SKAT might not have automatically (freelance expenses, specific interest payments)
• Confirm the filing

If you are owed a refund, it is paid to your NemKonto. If you owe additional tax, you pay by the August deadline to avoid a late payment surcharge.

Key Takeaways

• Without a skattekort, your employer is legally required to withhold 55% of your salary. Get this sorted in week one.
• You need CPR and MitID before you can access skat.dk and file your preliminary income assessment.
• Filing the preliminary income assessment (forskudsopgørelse) triggers your tax card — it takes 1–2 business days to activate.
• Claim your commuting deduction upfront — it lowers your withholding rate immediately.
• A-income (employment) is taxed at source by your employer. B-income (freelance, rental) requires you to pay instalments or reconcile at year end.
• Overpaid tax is refunded in March–April of the following year via NemKonto.