Income Tax Rate in Sweden

The income tax rate in Sweden consists of two parts – the national income tax rate and local tax rate.

National income tax in Sweden is progressive. Income is taxed at a rate of 20% if it is more than SEK 598,500.

The local income tax rate varies by region, municipality, religious affiliation and burial tax.  Local income tax rate range from 29% to 36%.

Deadlines for income tax returns

May 2 is the deadline for filing the income tax report for the previous reporting year in Sweden.

To ensure proper crediting by Swedish Tax Agency, the following information must be included with the payment:

• Personal Identification Number;
• Alternatively, Organization Registration Number or Special Registration Number;
• OCR Number: A 13-digit alternative for identification.

Non-taxable minimum in Sweden

In Sweden, a basic tax-free allowance is automatically approved when tax is calculated. However, it must be noted in the “additional information” section of the income tax return.

The basic allowance varies depending on income. For incomes up to 24,200 SEK per year, the full amount is provided. For incomes between 24,300 SEK and 57,000 SEK per year, the allowance is 24,300 SEK. As income increases up to 155,900-178,400 SEK per year, the deduction increases to a maximum of 44,200 SEK. For incomes above 178,400 SEK, the deduction gradually decreases, reaching a minimum deduction of 16,800 SEK for incomes from 451,500 SEK per year.

Deductions

Sweden allows deductions to lower taxable income. Here are some key ones:

• Standard Deduction: Everyone gets this automatic deduction, reducing taxable income without needing proof of expenses. The amount varies based on income and factors like age.
• Work-related expenses: It is possible to deduct some work-related expenses, such as travel beyond commuting distance or required uniforms.
• Other Potential Deductions: These include interest on mortgages, charitable donations (limited), medical expenses exceeding a threshold, moving expenses for work relocation (limited), and childcare costs (partially deductible).

Getting tax number in Sweden

The tax number (personnummer) is obtained by registering with the Swedish Tax Agency when applying for a residence permit. 

Non-residents have the option of applying for a temporary tax number (“särskilt skattetillstånd”) online or by mail via the Swedish Tax Agency’s website.

Procedure for refunding overpayments

In Sweden, the refund of overpaid income tax is usually automatic. To obtain a refund, it is necessary to file an income tax return. Usually the tax liability and prepayments have already been calculated in the income tax return. If the amount of the prepayment exceeds the tax liability, the refund will be made within a few months. Swedish Tax Agency automatically processes returns and issues refunds to a pre-registered account if there’s an overpayment. Refunds are made to the pre-registered account that was specified during registration.

Penalty

Penalty for late filing: missing the deadline leads to a fine. The filing penalty is determined by the filing delay. The Swedish Tax Agency can impose up to three fines for late filing. Each fine amounts to SEK 1250.

Penalty for incorrect/incomplete return: penalties depend on intent. Negligence may result in a fine up to 40% of additional tax owed. Fraudulent cases can lead to criminal charges.