Employer Tax Contributions

Tax Type	Rate	Base
Social Security Contributions	31.42%	Gross Salary
Income Tax Withholding (employee)	Approx. 30% (municipal) + 20% (state for higher incomes)	Employee Salary (Progressive)
Special Payroll Tax on Pension Contributions	24.26%	Pension costs
Value-Added Tax (Standard)	25%	Goods and Services

Filing & Compliance

• Employers must register with the Swedish Tax Agency (Skatteverket) before processing payroll.
• Monthly employer declarations and payments for withheld income tax and social security contributions are due by the 12th of the following month, except for January and August, when the due date is the 17th.
• Employers must report payments, tax deductions, employer contributions, and employee benefits for each payee each month in the PAYE Tax Return service.

In Sweden, employee tax deductions are handled through a pay-as-you-earn (PAYE) system, where employers deduct taxes directly from employee salaries. This overview covers the key aspects of this system for 2025.

Income Tax

• National Tax: This progressive tax applies to income above SEK 523,200 annually. The rate is 20% for income exceeding this threshold, and 0% below it. As of February 5, 2025, there is no information available about potential changes for the next taxation year.
• Municipal Tax: A flat tax rate determined by each municipality, averaging around 32.28%. This rate can vary, so employees should confirm the specific rate applicable to their location.

Other Deductions

• Social Security Contributions: Employees do not directly contribute to social security. Employers pay these contributions, which are approximately 31.42% of the employee's salary.

• Job-Related Expenses: Certain work-related expenses can be deducted.

  • Temporary Work: Deductions for increased expenses (meals, minor costs) during temporary work within Sweden are either the actual costs or a standard rate of SEK 145 per day (for the 2024 income year – tax return 2025). The standard rate information for income year 2025 will be available towards the end of the year.
  • Travel: Deductions are available for travel expenses exceeding SEK 11,000 annually. For privately owned cars, the deduction is capped at SEK 50 per 10 km (for 2024 income year). For employer-provided cars, it's SEK 24 per 10 km, or SEK 19 for electric cars (for 2024 income year). Those who are elderly, disabled or ill can deduct up to these limits regardless of distance. The rates and thresholds might change for the next tax year, information regarding changes for 2025 will be available by the end of the current year.

Expert Tax Relief

Foreign experts and key personnel can apply for tax relief, resulting in 25% of their income being exempt from tax and social security. Eligibility criteria for 2025 include being a non-Swedish national who hasn't been a tax resident in the past five years. The alternative qualification is having a monthly income exceeding SEK 88,200 (1.5 times the 2025 price base amount). The relief period is five years, although seven-year periods may exist due to previous regulations. Applications for this relief must be submitted to the Taxation of Research Workers Board (Forskarskattenämnden) within three months of starting work in Sweden.

General Information

• Tax Tables: Employers use tax tables provided by the Swedish Tax Agency (Skatteverket) to deduct the correct amount of preliminary income tax.
• Reporting: Employers submit monthly reports (Arbetsgivardeklaration) to Skatteverket, detailing withheld taxes and social security contributions.
• Payment Deadlines: Tax payments are generally due by the 12th of the following month (exceptions apply for January and August).

Additional deductions might exist. Consult with the Skatteverket or a tax advisor for personalized guidance. This information is current as of February 5, 2025, and may be subject to change.