Tax & Money

Your Danish payslip, line by line

Updated July 2026Reviewed July 2026
The one-line versionDanish tax is withheld at source, so your payslip shows the deductions already taken: AM-bidrag first, then A-skat (withholding tax) after your monthly allowance. Learn the words once and it stops being a mystery.

The key lines

A Danish payslip (lønseddel) looks dense, but the important lines are few:

Danish termWhat it is
BruttolønGross salary before any deductions
AM-bidrag8% labour-market contribution, taken first
A-skatWithholding income tax, after your monthly allowance
ATPSmall mandatory pension contribution
PensionYour workplace pension contribution, if any
Nettoløn / til udbetalingNet pay - what actually lands in your account

The order of deductions

It always runs the same way: AM-bidrag comes off the gross first, then your tax card's monthly allowance is subtracted, then A-skat is withheld on the rest at your combined bottom + municipal rate (plus higher brackets if you earn enough). Your tax card tells the employer exactly how much to withhold.

Check these every payslip

  • Is your tax card applied? No tax card means withholding at a punishing default rate (up to 55%).
  • Does the allowance look right? Your monthly personal allowance should be reducing the taxable base.
  • Pension contributions - these reduce your taxable income, so they're working for you.
No tax card = over-taxedIf you start work before SKAT has issued your tax card, your employer must withhold at the default 55%. You'll get it back eventually via the aarsopgorelse, but sort your tax card early to avoid the cash-flow hit.

Why your take-home varies

Two people on the same gross can take home different amounts because of municipality, church-tax membership, pension setup and deductions. The net salary calculator shows your figure; deductions you're missing shows how to keep more of it.

Common questions

What's the difference between AM-bidrag and A-skat?
AM-bidrag is a flat 8% off the top; A-skat is the income tax withheld after your allowance, at your bracket rate.
Why is my first payslip so heavily taxed?
Most likely your tax card wasn't applied yet, triggering the 55% default. It corrects once the card is in place, and any overpayment returns via the annual statement.
What is ATP?
A small mandatory supplementary pension contribution deducted automatically - a fixed low amount, not a percentage.

Verified July 2026 against official sources: skat.dk (Skattestyrelsen), skm.dk (Ministry of Taxation) and borger.dk. Figures are 2026 levels and reset each January - always check skat.dk for your personal numbers. General information, not tax advice - see our editorial policy.