fradrag

Fradrag is a term used in several Nordic tax systems to describe amounts that are subtracted from gross income or from calculated tax, with the purpose of lowering a person’s tax burden. The word denotes deductions or allowances that reduce what is taxable or what must be paid to the tax authority. While the exact rules vary by country, the basic idea is to recognize certain expenses, circumstances, or standard allowances as legitimate reductions in tax liability.

How fradrag works can differ between jurisdictions. Some deductions are fixed sums granted automatically, while others must be claimed in a tax return with documentation. Fradrag are typically categorized into general allowances, work-related or professional expenses, and family or household-related deductions. General allowances may reflect basic living costs; work-related deductions can cover travel between home and work, professional fees, or equipment; family-related deductions may cover dependents or childcare costs. In some systems, deductions for housing, energy improvements, or charitable giving also apply.

The effect of fradrag is to reduce either taxable income or the final tax payable. Amounts and eligibility rules vary widely, and some deductions may reduce tax to zero but not below, while others can be carried forward or refunded depending on local law. Because rules are jurisdiction-specific, individuals typically rely on annual tax guidance or filing software to determine which fradrag they can claim.

In short, fradrag are central instruments in Nordic taxation used to reflect personal circumstances and eligible expenses, thereby reducing the overall tax burden in a systematic and policy-driven way.