kommuneskatt

Kommunalskatt, in Sweden, is the portion of personal income tax that municipalities and county councils levy on residents’ income. It applies to earned income, including wages, pensions, and certain business incomes, and is calculated as a percentage of income. The rate is set by each municipality and by the associated county council, so the total tax rate varies by location. On average, the combined municipal and county tax rate is around one-third of income, but the exact rate depends on where you live. Capital income is taxed separately at the national level and is not subject to kommunalskatt.

Administration and collection are handled by the Swedish Tax Agency (Skatteverket). Employers withhold municipal and county tax from wages, and individuals may receive preliminary tax calculations and request adjustments if necessary to avoid under- or overpayment. In practice, deductions and allowances, such as basic deductions, reduce the tax payable.

Use of revenue: Municipalities and county councils use kommunalskatt to fund local services, including education, healthcare, social services, infrastructure, and municipal administration. The rate and allocation of funds are decided by democratically elected local and regional councils.

Relation to other taxes: In addition to kommunalskatt, individuals may owe state income tax on higher incomes and capital gains tax on investments. These taxes are separate from kommunalskatt and administered by Skatteverket. The kommunalskatt framework reflects Sweden’s decentralized approach to local taxation, providing municipalities with a major source of funding for public services while coexisting with national tax policies.