As of 1 January 2019 our pensions are progressively taxed at a rate between 30% and 40% according to your annual income. At first, the pension is taxed at the rate of 40%, and then the difference is settled at the end of the tax year.
The table below shows the pension tax rate according to annual income.
|Your annual income is over:||but less, or equal to:||the tax rate is (%):|
|DKK 0||DKK 235,000||30.0|
|DKK 235,000||DKK 240,000||30.5|
|DKK 240,000||DKK 245,000||31.0|
|DKK 245,000||DKK 250,000||31.5|
|DKK 250,000||DKK 255,000||32.0|
|DKK 255,000||DKK 260,000||32.5|
|DKK 260,000||DKK 265,000||33.0|
|DKK 265,000||DKK 270,000||33.5|
|DKK 270,000||DKK 275,000||34.0|
|DKK 275,000||DKK 280,000||34.5|
|DKK 280,000||DKK 285,000||35.0|
|DKK 285,000||DKK 290,000||35.5|
|DKK 290,000||DKK 295,000||36.0|
|DKK 295,000||DKK 300,000||36.5|
|DKK 300,000||DKK 305,000||37.0|
|DKK 305,000||DKK 310,000||37.5|
|DKK 310,000||DKK 315,000||38.0|
|DKK 315,000||DKK 320,000||38.5|
|DKK 320,000||DKK 325,000||39.0|
|DKK 325,000||DKK 330,000||39.5|
Prior to 1 January 2012, the pension was not taxed at collection. Instead, the pension was taxed at payment. Therefore, it is always necessary to distinguish between the pension collected before and after 1 January 2012, as the pension collected before 1 January 2012 will have to be taxed at payment.
If you receive your income as B-income, for example if you are self-employed or if your employer is foreign, you must mention your pension savings on your tax return. The pension tax will then be added to the annual tax statement.