Denmark plans to scrap middle-income tax, sparking coalition negotiations
The Danish government intends to eliminate the mellemskat on high earners from 2027, a move that could save affected taxpayers about 7,200 kroner annually.
Denmark’s cabinet aims to remove the mellemskat, a 7.5% levy on incomes between 641,200 and 777,900 kroner, with the change slated for 2027. Tax Minister Jakob Engel-Schmidt said the reform could reduce annual taxes by roughly 7,200 kroner for those currently paying the charge. Approximately 619,000 taxpayers earning above 641,000 kroner would be eligible, though the benefit scales with earnings.
The proposal carries a projected cost of about 2.5 billion kroner and will need backing from at least eight seats of the right-leaning blue block, as the ruling red bloc falls short of a majority without it. While right-wing parties typically favor lower taxes for high earners, negotiations may focus on how the reform will be financed. The exact implementation date remains undecided pending a formal legislative proposal.
Why it matters
The tax cut could reshape Denmark's fiscal policy and affect millions of high-income earners.
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