2025 has just begun. Several major changes have been pushed through that directly affect your and many people around you’s private finances.
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More money left for employees and retirees
A large and contributing reason for this is the strengthened employment tax deduction and the basic deduction, which together contribute to tax relief for both employees and pensioners.
– There will be a little more money left in the wallet, just like for wage earners, but many will probably consider it too little and do nothing about it. Regardless, it is an important principle. With their employment tax deduction, the politicians do not want to cause a ‘tax gap’ between salary and pension, something all parties have been careful to point out that they do not want to see, says the savings economist Frida Bratt stuck in an interview with News24.
READ MORE: Good news for pensioners: Paying 3,200 less in taxes
Frida Bratt works as a savings economist. Photo: Press image Nordnet Bank 67 years? Then you pay less in tax
In a post on the Swedish Pensions Agency homepage the authority explains that, as usual, income from work and pension are taxed differently. But from January of the year you turn 67, a lower tax is paid on both pension and salary, in the event that you continue to be paid a salary and are a job holder.
This means that there will be more money left in the wallet, something that can be considered positive when it comes to the country’s older residents. The last few years have been tough, especially for them.
From the year you turn 67, income tax will therefore be lower. The reason is precisely the increased basic deduction. The strengthened employment tax credit also gives older people lower tax on earned income.
– So that the employment tax deduction does not cause an unfair difference in taxation between salary and pension, which can be seen as deferred salary, it is necessary to introduce a strengthened basic deduction on pension income, says Frida Bratt to Nyheter24 and adds in conclusion:
– As I said, you can discuss how much, or how little, the tax cut will actually be felt, but the principle is important. However, it is completely understandable if you as a pensioner feel that times are tough. Food prices and other things remain at higher levels and interest rates are indeed falling, but many elderly people live in tenements and are instead affected by rent increases.
READ MORE: New tax rules affect your pension in 2025
The Swedish Pensions Authority: It applies in 2025
As a pensioner in 2025, you will not only pay less in taxes.
The Pensions Authority describes what applies, to the letter during the year:
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