calculate your taxes
calculate your taxes, Here you can calculate your income tax and also see how the employer’s contribution affects it. You make a simple calculation by filling in your monthly salary, or another income, as well as your home municipality and year of birth. Ekonomifakta does not save your personal data.
Average rate
Last updated: 2022-02-11
The average tax shows the percentage of income that is paid in tax. If the annual income is SEK 100,000 and the income tax is SEK 20,000, the average tax is 20 percent. The term should not be confused with a marginal rate which shows how much tax you pay on an increase in income.
Interpreting the concept of average tax is relatively simple. If the annual income is SEK 100,000 and the income tax is SEK 20,000, the average tax is 20 percent. The average tax is thus calculated on the entire income and should not be confused with the marginal rate, which instead shows how much tax we pay on an increase in income.
As can be seen from the diagram, the average tax increases with annual income. The higher our income, the more we pay in taxes. It is said that the income tax is progressive.
The employment tax credit and the basic deduction for the elderly means that the average tax differs between earned income and other income, for example, unemployment benefit, sickness benefit, and sickness/activity benefit. The differences are greatest for annual incomes up to approximately SEK 390,000 because the employment tax credit then stops increasing. Then the differences begin to decrease, above all for incomes above SEK 654,000. This is because the employment tax credit then starts to decrease. Granted income at that level is obviously not very relevant to discuss, but it may still be worth noting that really high earned income is ultimately taxed as if the employment tax credit had never been introduced.
For people who have turned 65 and have a pension, the average tax is now basically identical to younger people workers. In the past, the average tax was slightly higher for the elderly because pensions do not provide any employment tax deduction. Starting in 2009, however, the tax for the elderly has been reduced on a total of nine occasions by their basic deduction reinforced. The basic deduction is the part of the income that is completely exempt from income tax.
