Taxes in Sweden

This article is for those of you that have found jobs or are seeking employment and wish to know more about how taxation works in Sweden.

Sweden has long been heralded as a country with high income tax. Let's see how it really works. First, there's the "grundavdrag" - the amount you can make that IS NOT taxed. Right now, it's 18,200 SEK per year. If you have one job and then start working another job then any job after your first job will be taxed the "normal" level of about 30%. This 30% includes local, regional and state taxes so the actual amount varies depending on where you are registered.

Around May of the following working year you will receive an income declaration in the mail from Skatteverket. This declaration will list your sources of income, how much tax you paid and how much you owe the government or how much you overpaid. Most of the time, you will have overpaid and should receive some of your income tax back in the months that follow. If you give them your bank account information then they will transfer the money and this is faster than if you receive a special card that you have to take to a bank to get your money. You have to confirm the declaration by either visiting Skatteverket, through SMS, through the internet or through the post. If you see any errors then you must notify Skatteverket by mail.

There are higher levels of taxation than 30% but these only kick in once you start earning a LOT of money. The first raise comes at over 350,000SEK per year and those earning over 530,000SEK per year also have to pay a higher percentage of income tax.