If you have a job in Sweden and do not depend on benefits for your income, you qualify for the jobbskatteavdraget, or employment tax credit, a tax reduction brought in by the government led by the Moderate leader Fredrik Reinfeldt in 2007 to reward those in work.
The tax was a key part of that government's focus on the arbetslinje, or work line, the idea behind which is that people should always be better off if they have a job than if they live on benefits.
As a percentage of income, those on the lowest salaries get the biggest tax reduction, with the maximum tax reduction next year set at 10,633 kronor.
The government broke down how people in different income brackets will be affected by the increase in jobbskatteavdrag in a document posted alongside a press release in September.
The column on the impact of "indexation" or indexeringen, includes the impact of three other tax reductions or thresholds which are adjusted each year in line with developments in salaries and inflation. These include a rise in the so-called skiktgräns, the point at which earnings qualify for state income tax, increases to the so-called grundavdrag, another tax reduction, and also the indexation of the employment tax reduction itself.
In 2024, the government paused the rise in the skiktgräns, but in 2025 it will once again rise with the consumer price index, with the government expecting the threshold to rise from 51,275 kronor a month to 53,590 kronor a month.
So how much do you stand to get?
- Unemployed. If you have had no income from employment at all you are not eligible for the jobbskatteavdrag, and would have received no tax reduction in either 2024 or 2025.
- Low income. People on incomes of 200,000 kronor a year will see the increase in the tax credit alone reduce their tax by 106 kronor a year compared to what they paid in 2024, and their tax reduced by 716 kronor once indexation is included.
- Median and average. People earning the median salary of 462,000 per year will see their tax bill decline by 3,671 kronor, 3,049 kronor of which will come as a result of the increase in the employment tax reduction alone. People earning the average salary of 517,200 kronor will see their tax bill fall by 4,464 kronor compared to what they paid in 2024, with 3,198 kronor coming from the increased employment tax reduction.
- High incomes. The biggest increase in the tax reduction will go to those earning between 1 million and 1.5 million kronor a year, with their taxes reducing by 10,633 kronor, the lion's share of which is coming from the impact of indexation, with only 3,197 kronor coming from the increased employment tax reduction.
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