fradraget

Fradraget is a term used in several Nordic countries to describe a deduction allowed by tax law that reduces either taxable income or the amount of tax owed. In practice, fradrag lowers the tax base or lowers the final tax payable, depending on the jurisdiction and the type of deduction. The underlying purpose is to adjust the tax burden in relation to certain expenses, activities, or personal circumstances.

Common categories include personal or standard deductions, itemized deductions for specific costs, and targeted deductions such as interest on loans, work-related expenses, pension contributions, charitable donations, and commuter costs. Some fradrag are automatic for eligible residents, while others must be claimed in the annual tax return and supported by documentation like receipts or statements.

In Sweden, fradrag cover deductions from income for various costs, while some measures reduce the tax payable directly. In Norway and Denmark, fradrag play a central role in shaping taxable income, with country-specific rules, ceilings, and annual adjustments. The exact relief provided by fradrag varies by country and year, and some deductions can be limited or phased out as income changes.

Limitations and rules differ across jurisdictions. Unused fradrag are not always transferable between years, and many types have ceilings, eligibility criteria, or documentation requirements. Politically, fradrag are often debated in discussions about fairness, economic incentives, and tax reform, as they influence how different groups bear the tax burden.

Related terms include tax deduction and tax credit. The concept of fradraget thus denotes the general mechanism to reduce tax liability through eligible expenses and allowances, with country-specific implementations.