๐Ÿฆ

Interest Deduction Calculator

Calculate the tax value of your Danish interest deduction (rentefradrag) on mortgage interest and other debt interest payments.

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 Interest Deduction (Rentefradrag) 2025

In Denmark, interest paid on loans โ€” including mortgage loans, bank loans, and credit card debt โ€” is tax-deductible. The interest deduction reduces your taxable income, providing significant savings especially for homeowners with large mortgage loans.

How do I calculate my interest deduction?

For negative capital income up to DKK 50,000, the deduction value is approximately 33%. For amounts exceeding DKK 50,000, the value drops to approximately 21% due to reduced state deduction benefits. This two-tier system was introduced to gradually reduce the tax subsidy for large debt burdens.

Is the interest deduction automatic?

You automatically receive the deduction throughout the year if your interest expenses are listed on your preliminary tax assessment (forskudsopgรธrelse). Danish financial institutions report interest expenses automatically to Skattestyrelsen.

What qualifies for interest deduction?

All personal interest expenses qualify, including mortgage interest, bank loan interest, car loan interest, student loan interest (SU-lรฅn), and credit card interest. For couples, the threshold for the high deduction is DKK 100,000 combined.

Frequently Asked Questions

How do I calculate the interest deduction?

The interest deduction value is approximately 33% of your interest expenses up to DKK 50,000 (DKK 100,000 for couples). For amounts above, the value is approximately 21%. Example: DKK 60,000 in interest gives 50,000 ร— 33% + 10,000 ร— 21% = DKK 18,600 in tax savings.

How large is the interest deduction in 2026?

For interest expenses below DKK 50,000 per year (DKK 100,000 for couples), the interest deduction is approximately 33%. Reporting increased interest expenses could give you over DKK 8,000 more paid out in 2026.

Is the interest deduction automatic?

Yes, you automatically receive the deduction throughout the year if your interest expenses are on your preliminary tax assessment. Banks and mortgage institutions report automatically to Skattestyrelsen.

What is the tax value of the interest deduction?

The tax value is approximately 33% for the first DKK 50,000 (DKK 100,000 for couples) and approximately 21-25.7% for amounts above that.

Where do I find my interest deduction?

Log in to skat.dk with MitID. Find your preliminary tax assessment on the front page. Find the field for your loan (e.g. field 481, 483, or 489). Enter this year's interest expenses and save.

Sources