What does the new top tax rate in 2026 mean for your finances?
From January 1, 2026, important new tax rules come into force. They can have a major impact on both personal and business finances.
In short, a new structure with multiple tax brackets is introduced. Today, we have a bottom tax and a top tax. From 2026, the top tax will be replaced by three new tax brackets: middle tax, top tax and top-top tax. In addition, some thresholds will be moved significantly.
Here's what you need to know about the changes:
The new tax brackets in 2026
Today, top tax is paid when income (after AM contributions) exceeds approximately DKK 611,800. In 2026, three new steps will be introduced for high incomes:
| Tax name | Tax rate | Starting from (Personal income after AM contributions) |
| NY Middle tax | 7,5 % | From 641,200 kr. |
| Top tax | 15 % | From 777,900 kr. |
| NY Top-top tax | 20 % (15 % + 5 %) | From 2,592,700 kr. |
| Tax name | Tax rate | Limit/remark |
| Employment deduction (max) | 63,300 DKK in 2026 (from 55,600 DKK in 2025) | |
| Share income (dividends/profits) | 27 % / 42 % | Limit for 27%: DKK 79,400 (double for spouses) in 2026 |
Note: The top tax threshold is raised by as much as DKK 166,100 to DKK 777,900, but the new intermediate tax of 7.5% of income between DKK 641,200 and DKK 777,900 must be paid.
Are there reliefs or increases for you?
The new rules result in both tax relief and tax increases, depending on where the income lies.
Most current top tax payers will get a tax break. By raising the 'real' top tax threshold to DKK 777,900, there is a tax reduction of up to approximately DKK 14,700.
For the highest incomes, the 20 percent top tax rate hits incomes above approximately DKK 2.8 million before AM contributions. Here, the relief from the increased top tax limit will be eaten up by the new, higher rate.
Better deductions and benefits
The rules also offer a larger employment deduction. The deduction amounts to 12.75 percent of personal income before AM contributions and increases to a maximum of DKK 63,300 (an increase of DKK 7,700, resulting in a tax saving of DKK 2,000).
The share income threshold is increased and the threshold for paying the high share tax (42%) is raised to DKK 79,400 (double for spouses), making it easier to bring home gains at the low rate.
Why is it important to act now?
The new rules mean that tax planning now involves three levels of tax, making it more complex.
For high-income earners and especially business owners using the company scheme, planning ahead is essential.
Need help navigating the new rules and optimizing your finances in 2026? Contact us to review your situation and make sure you're applying the new limits correctly.
