Inkomstskatt

Inkomstskatt is the tax paid by individuals on their income in Sweden. Residents are taxed on their worldwide income, while non-residents are taxed on Swedish-source income. The tax system is administered by the Swedish Tax Agency (Skatteverket).

Tax proceeds are split into municipal tax (kommunalskatt) and state tax (statlig skatt). Municipal tax is a fixed percentage determined by each municipality and may include a church tax for members of the Church of Sweden. The rate varies by municipality and can be a substantial portion of the total tax burden.

State tax is an additional, progressive tax that applies to portions of income above certain thresholds. The structure is designed to impose higher rates on higher levels of income, over and above the municipal tax.

The tax base for inkostskatt primarily covers earned income, such as wages, salaries, pensions, and business income. Capital income (for example, interest and dividends) is taxed separately as kapitalinkomst at a flat rate, and is not part of the earned-income tax calculation.

Deductions and credits influence the amount of tax owed. The grundavdrag (basic allowance) reduces taxable income, while jobbskatteavdrag (earned income tax credit) reduces tax liability for low- to middle-income earners. Other deductions may be available for work-related expenses and certain personal circumstances.

Administration and compliance are handled by Skatteverket. Most tax is withheld at source by employers, with a year-end settlement or annual tax return to adjust any remaining liability. The system applies to residents and, under specific rules, to non-residents with Swedish-source income. Inkomstskatt is a key instrument for financing public services and welfare programs in Sweden.