How the Danish Tax Card Works
Your tax card (skattekort) tells your employer how much tax to deduct from your salary. If it’s wrong, you’ll either pay too much tax every month (smaller paycheques) or too little (a bill at the end of the year). Getting it right from the start is one of the most important things you can do as a newcomer.
What is the tax card?
The tax card (skattekort) is an electronic document that SKAT (the Danish Tax Agency) makes available to your employer. It contains two key numbers: your withholding rate (trækprocent) — the percentage of income tax to deduct — and your monthly allowance (fradrag) — the amount you can earn tax-free each month before the percentage applies.1
The tax card is fully digital — there’s no physical card. Your employer retrieves it automatically from SKAT’s system using your CPR number. You never need to hand anything to your employer.
The forskudsopgørelse (preliminary tax assessment)
Your tax card is generated from your forskudsopgørelse — a preliminary estimate of your income, deductions, and tax for the current year. SKAT creates this estimate based on whatever information it has: your previous year’s income, your employer’s reports, and any adjustments you make yourself.2
If you’re new to Denmark, SKAT may not have any income data for you. That means your forskudsopgørelse might be blank or wrong — and your tax card will reflect that. This is the #1 thing newcomers need to fix.
Without a correct forskudsopgørelse, your employer will deduct tax at up to 55% (the maximum rate without a valid tax card). You’ll eventually get the overpayment back — but it could take months, and your paycheques will be much smaller in the meantime.3
Types of tax cards
There are three types, and they handle different income situations:
Hovedkort (Main card)
Your primary tax card, used by your main employer. It includes your personal allowance (the tax-free amount each month). Most people only have a hovedkort.
Bikort (Secondary card)
Used for a second job or additional income source. It does not include the personal allowance — so the withholding rate is higher (often 8–10 percentage points more than your hovedkort). Your employer needs to know whether they should use your hoved- or bikort.
Frikort (Tax-free card)
For people whose total annual income is below the personal allowance (~49,700 DKK/year). Mainly used by students or people with very limited hours. Income up to the frikort limit is tax-free — but AM-bidrag (8%) still applies.
How to get your tax card
Register for a CPR number
Your tax card is linked to your CPR number. Once your CPR is active, SKAT can generate a forskudsopgørelse for you.
Contact SKAT or visit International House
Call SKAT on +45 72 22 27 80 once you’ve registered your CPR and have your employment contract ready. They’ll generate your tax card based on your expected income. You can also get this done at International House Copenhagen as part of the registration process.4
Check your forskudsopgørelse online
Log in to skat.dk/tastselv with MitID. Go to “Forskudsopgørelse” and verify that your expected income, deductions, and withholding rate look correct. If not, adjust them (see below).
How to check and fix your tax card
Log in to TastSelv on skat.dk. Your forskudsopgørelse shows:
- Expected annual income — should match your employment contract (gross salary × 12).
- Deductions (fradrag) — personal allowance, employment deduction, commuter deduction, A-kasse fees. Make sure these are included.
- Withholding rate (trækprocent) — the percentage your employer deducts. For most people this is 35–40%.
- Monthly allowance — the amount you can earn each month before the withholding rate kicks in. Usually around 4,000–5,000 DKK/month.
If anything is wrong, fix it now. You can adjust your expected income, add deductions, or change details directly in TastSelv. Changes take effect from the next month’s pay. If you’ve been overtaxed in previous months, the system will compensate by reducing your tax in the remaining months of the year.
Tip: If you start work mid-year, make sure your forskudsopgørelse reflects only the months you’ll actually be earning in Denmark — not a full 12 months. Otherwise SKAT will spread your deductions over too many months and your withholding rate will be wrong.
Working without a tax card
If you start work before your tax card is ready (common for newcomers), your employer must withhold tax at 55% — the maximum rate. This is temporary. Once your tax card is generated, the rate adjusts. Any overpayment is reconciled either in your next paycheques or through your annual tax return.5
To speed this up: call SKAT as soon as you have your CPR and employment contract. They can often generate a tax card within a few days.
Common problems
My first paycheque was tiny
Almost certainly because your tax card wasn’t ready and your employer used the 55% rate. Check if your tax card exists in TastSelv. If not, call SKAT. The money isn’t lost — it’ll be refunded once the correct rate is applied.
My withholding rate seems too high
Check your forskudsopgørelse. Common causes: church tax is included when it shouldn’t be, your income estimate is wrong, or deductions are missing. Adjust in TastSelv.
I have two jobs — which card does each employer use?
Your main employer uses the hovedkort (which includes your personal allowance). Your second employer uses the bikort (higher rate, no allowance). Make sure each employer knows which one to use — you can specify this in TastSelv.
I’m on Forskerskatteordningen — is it different?
Yes. If you qualify for the researcher tax scheme, your tax card will show a flat rate of about 32.84% (27% + 8% AM-bidrag) instead of the normal graduated rates. SKAT sets this up when you apply for the scheme.
Questions and answers
Do I need to give my tax card to my employer?
No. It’s fully electronic. Your employer retrieves it from SKAT’s system using your CPR number. You just need to give them your CPR.
Can I change my tax card during the year?
Yes, as many times as you want. Changes in TastSelv are reflected in the next pay period. Common reasons: salary change, new deductions, second job.
What’s the difference between trækprocent and AM-bidrag?
AM-bidrag (8%) is deducted from your gross salary first, by your employer. The trækprocent (your withholding rate) is then applied to the remaining amount after AM-bidrag and your monthly allowance. They’re separate deductions.6
When is the forskudsopgørelse generated for next year?
SKAT generates the next year’s forskudsopgørelse in November. You can review and adjust it before January 1 to make sure your tax is correct from the start of the new year.
Sources
- SKAT — First steps: tax card contains withholding rate and deductions. ↩
- SKAT: forskudsopgørelse is a preliminary estimate. ↩
- Life in Denmark: without tax card, employer deducts at highest rate. ↩
- SKAT: call to generate tax card, or visit ICS. ↩
- SKAT — Working in Denmark: 55% rate without valid card. ↩
- SKAT: AM-bidrag applied before income tax. ↩