Income Tax in Denmark: how does it work?

Most people pay A-tax on their wages, but everyone has a personal allowance that is tax-free. This amount is divided across the 12 months of the year and deducted from wages before taxes are calculated. Employers calculate an individual's A-tax and ensure it is paid to the tax authorities (Skat).

If you run your own business, work freelance, or earn income through honorariums, you pay B-tax. In this case, you must report your B-income to Skat and pay the necessary taxes on your earnings yourself.

How much can you earn before paying income tax in Denmark ?

In 2025, the tax-free amount you can earn is 51,600 DKK. Starting in 2023, the tax-free amount is the same whether you are over or under 18 years old. If you do not expect to earn more than this amount, you can get a frikort (tax-free card) from Skat. However, if you expect to earn more than 51,600 DKK annually (approximately 4,300 DKK per month), you should get a skattekort (tax card) to ensure the tax-free allowance is distributed evenly over the year and that your tax payments are spread across the 12 months.

The tax-free amount is the annual tax-free income for all citizens. This means that even if you earn more than 4,300 DKK per month in the first few months of the year, you still won’t pay tax if you have a frikort. You only start paying tax once your total income for the year exceeds the full annual allowance.

If you reach the maximum tax-free amount in September, you will have to pay tax on all income earned for the rest of the year. This can be frustrating as your net income will drop significantly in the last months of the year compared to the earlier months. Therefore, it may be beneficial to use a skattekort instead of a frikort so that your tax payments are evenly distributed throughout the year.

It’s worth calculating how much you expect to earn before deciding which type of tax card to choose.

Monthly income threshold before tax

As mentioned, you can earn around 4,300 DKK per month tax-free. Consider what kind of employment contract suits your expected working hours—do you plan to work 6 hours a week or more than 20 hours? This affects which tax card you should choose.

Make Your Calculation

Let’s look at an example:
To calculate, take the number of hours you plan to work weekly and multiply it by your hourly wage (e.g., 150 DKK).

• 6 hours per week = approx. 28 hours per month = 4,200 DKK per month

• 20 hours per week = approx. 90 hours per month = 13,500 DKK per month

If you work only 6 hours a week, you can see that you will quickly approach the 4,300 DKK monthly threshold. If, for example, you want to work more during holidays, you may easily exceed the frikort limit before the end of the year. Conversely, if you plan to take a long summer break, you can easily stay within the frikort limit by working only about 6 hours per week.

You should crunch the numbers before deciding whether to get a frikort or a skattekort. With a skattekort, the tax-free amount is spread evenly over the 12 months as a monthly allowance before tax.

Example Calculation

Below is an example with a fictional hourly wage of 150 DKK, a tax deduction of 4,000 DKK, and a 40% tax rate:

If you work under a frikort from the beginning of the year, your entire salary is paid out until you reach your frikort limit = 51,600 DKK (in 2025). After this, you pay tax on your entire income without any deductions, and the calculation looks different:

As shown above, your income decreases significantly in the year’s final months. If you work 20 hours a week, you’ll hit the limit after 3.5 months, making it sensible to choose a skattekort from the start, ensuring a tax-free deduction across all 12 months.

The annual statement contains all the information. 

Your employer calculates your tax and pays it to Skat. Once a year, Skat compiles information from your employer(s) to determine whether you’ve paid too much or too little tax. This is called the annual tax assessment (årsopgørelse).

You can find your årsopgørelse on skat.dk, where it clearly shows your earnings, the tax you’ve paid, and any tax refunds or amounts owed. It also indicates when excess tax will be refunded and by what date unpaid taxes must be paid to avoid interest charges.

If you notice in June that you are paying too little tax, you can contact Skat to adjust your tax card, ensuring your deduction is regulated and reducing the amount you owe later.

Is there a difference in the tax-free amount between A-income and B-income?

The short answer is no—for individuals with only B-income, such as self-employed individuals. If you have both A-income and B-income, you pay both A-tax and B-tax, and the tax-free amount is offset against your A-income.

In short, B-income is income where no tax is automatically withheld. This applies to:

• Self-employed individuals

• People running their own business

• Honorariums (e.g., for giving lectures)

• Freelance work

If you have two employers, this does not mean you pay B-tax. Both employers calculate and pay the tax to Skat. Typically, one employer uses your personal allowance, while the other calculates your salary using the tax rate from your skattekort, whether it’s a frikort, main card, or secondary card.

The difference between A-tax and B-tax is that A-tax is automatically deducted from A-income, while you are responsible for paying tax on B-income.

Get an active job at Just Eat with good working conditions

When you work as a courier for Just Eat, you can choose from several contract types. You decide how many hours and when you work. You receive a fair hourly wage, vacation pay, and sick pay. Just Eat has a collective agreement ensuring the best working conditions.

To be hired at Just Eat, you need:

• A Danish CPR number

• Danish MitID

• A Danish bank account

• A work permit if you’re not an EU citizen

Just Eat provides uniforms and delivery bags, and you’re welcome to use your own bike, scooter, or car. We also pay for your time while orders are being prepared.

If you enjoy outdoor work, meeting new people, and delivering excellent service, a courier job at Just Eat might be perfect for you. We look forward to hearing from you!

The information included on this page is only intended for general information purposes and does not relate specifically to work at just-eat.dk. Although just-eat.dk. makes every effort to keep the content on this page up to date, the information is offered without any guarantee or claim of accuracy. We therefore recommend that you consult official government websites or seek professional advice before acting.