In 2025, major changes will be implemented that affect both salary, pension and tax.
The enhanced employment tax deduction and the basic deduction lower the tax on work-related income and pensions. The reason why the tax is reduced for both parts is that no difference should be made between salary and pension, on the condition that you have reached retirement age, that is.
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Reduced tax: SEK 26.7 billion, which corresponds to 44 percent of the total budget, which amounts to SEK 60 billion.
Source: Ministry of Finance
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More money in the wallet in 2025
As the government has decided on an increased employment tax deduction, the previous phase-out of employment tax deductions, which was introduced in 2016, has also been scrapped.
In addition, the strata limit is also indexed, which applies to taxable earned income such as salary or pension. It will result in more money in the wallets of many Swedes after the big expenses are paid.
The site The taxpayers states that the cut-off point for the state income tax in 2025 will be raised to SEK 52,150 per month, from the previous SEK 49,875. However, those who have reached the age of 66 have a cut-off point of SEK 61,100.
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Two breakpoints for state income tax
In order for you to know how big your income can be before the state income tax is levied, you can advantageously start from the so-called break point.
The Swedish Tax Agency states that the cut-off point is precisely the limit that applies to withdrawal of state income tax before the basic deduction. And in Sweden there are two cut-off points: one for those who have not yet turned 66 at the start of the year and one for those who have reached the age of 66 at the start of the year.
“You who have not turned 66 at the beginning of the year can have a total annual income of SEK 643,100 (625,800 + 17,300) before the state income tax begins to be collected,” the authority writes on its homepage and adds:
“You who have turned 66 at the beginning of the year can have a total annual income of SEK 733,200 (625,800 + 107,400) before the state income tax is levied. The fact that you who have turned 66 at the beginning of the year have higher cut-off points is due to the fact that the basic deduction is higher”.
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Photo: Janerik Henriksson/TT
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You pay both municipal and state tax
As always, each person must pay municipal and state tax. The municipal income tax that applies to you is based on your home municipality where you are registered. It consists of two parts: the municipal tax and the regional tax.
The state income tax, on the other hand, is levied on people with earned income, capital income and provision for expansion funds.
“State income tax is only calculated if the basis for the tax is at least SEK 200. The limit value applies to the respective basis”, explains Tax Agency for.
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This is how you can calculate your tax in 2025
To find out how much you have to pay in tax on your income, you can use the Swedish Tax Agency’s calculation tool. Here you can calculate your tax in 2025.
You need to fill in the following:
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