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Bottom Tax Calculator

Calculate Danish bottom tax (bundskat) at 12.09% on taxable income after AM-bidrag and personal allowance deduction.

๐Ÿ‡ฉ๐Ÿ‡ฐ All calculations are based on Danish rules, rates, and currency (DKK). This calculator is translated for convenience but applies exclusively to Denmark.

Danish Bottom Tax (Bundskat) 2025

Bottom tax is a state income tax of 12.09% applied to your taxable income after deducting AM-bidrag and the personal allowance. Unlike top tax, bottom tax applies to all taxpayers with income above the personal allowance threshold, making it the broadest state income tax in Denmark. Use our free calculator to see how much you receive after tax.

How is bottom tax calculated?

First, 8% AM-bidrag is subtracted from your gross income. Then the personal allowance of DKK 49,700 (2025) is deducted. Bottom tax of 12.09% is calculated on the resulting taxable income. For a typical salary of DKK 540,000, the bottom tax amounts to approximately DKK 52,800 per year.

Impact of the personal allowance on bottom tax

The personal allowance effectively shields the first DKK 49,700 of your income after AM-bidrag from bottom tax. This saves every taxpayer approximately DKK 6,009 per year in bottom tax alone. The allowance also applies to municipal tax, increasing its total value significantly.

Frequently Asked Questions

What is the threshold for bottom tax?

The lower threshold for paying bottom tax in 2026 is a personal income exceeding DKK 54,100 if you are over 18 years old.

How do you calculate bottom tax?

Bottom tax is calculated at 12.01% on the portion of your personal income that exceeds your personal allowance. It is calculated on personal income plus any positive net capital income.

When do I have to pay bottom tax?

If your annual income exceeds DKK 54,100 (2026), you must pay bottom tax. If your annual income is below that amount, you do not.

What is the 40% rule?

In addition to the basic allowance of DKK 50,200 (2026), there is a 40% tax-free deduction for rental income. This means that after the basic allowance, you can deduct an additional 40% from the remaining rental income.

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