STA Income Tax Brackets in Sweden for 2024

Recognized as #1 in the European Union for innovation, Sweden has a thriving startup scene and offers a springboard for companies to take new ideas to global markets. Sweden is also a cleantech pioneer and a global leader in waste management and circular economy models.

The Swedish tax system is ranked 13th in the OECD, according to the Tax Foundation’s International Tax Competitiveness Index (ITCI). This measures the 38 OECD countries’ tax systems based on over 40 variables. Sweden’s personal dividend tax rate and capital gains tax rate are both above the OECD average. However, one of the country’s strengths is its provision for net operating losses to be carried forward indefinitely.

The tax system is administered by the official tax body, the Swedish Tax Agency (Skatteverket). The Income Tax Act (Inkomstskattelagen) provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with Swedish tax laws.

Here you will learn more about:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Sweden

Personal Income Tax (PIT) Brackets for Individuals in Sweden for 2024

Swedish residents are required to apply for a Swedish identity card from the tax agency. Additionally, individuals who choose to move to Sweden to live for more than one year are required to be listed on the Swedish Population Register. 

Depending on your tax liability, you may either need to register for preliminary A-tax or apply for special income tax for non-residents (“SINK”). The tax agency will decide on the type of tax paid which will then enable your employer to make the correct deductions from your employment income.

In general, if you are domiciled in Sweden, stay regularly, or have significant connections to the country, you will be subject to unlimited tax in Sweden (worldwide income). An individual who is not subject to unlimited tax is subject to limited tax, in which case, tax will be levied on certain forms of income.

Taxes in Sweden, however, include a basic tax-free allowance (”grundavdrag”), a sum that is exempt from taxable income. This sum is affected by an individual’s age. The PIT rates for resident individuals are summarized below. 

*Based on the average municipal income tax rate.

Non-residents are taxed at a flat rate of 25%.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rate in Sweden for 2024

The standard corporate tax rate in Sweden is 20.6%.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Sweden

A summary of Capital Gains Tax (CGT) as it applies to corporations and individuals in Sweden is provided below.

Withholding Tax Rates for Residents and Non-Residents in Sweden

In general, withholding tax (WHT) in Sweden is levied on residents and non-residents. WHT rates may vary depending on the source of income. The WHT rates applicable to dividends, interest and royalties are tabulated below. Take note that payments to resident corporations and individuals are taxed as ordinary income. Only resident banks and similar entities are required to withhold tax on cash dividend payments made to resident individuals.

Sweden is also a signatory to double taxation treaties (DTTs) with several countries, in which case, the WHT rates may again vary. A taxpayer may benefit from the provisions of these DTTs.

Value-Added Tax Rates in Sweden

Value-Added Tax (VAT) rates in Sweden with non-exhaustive application examples are summarized below.