Question

Hi there,

I qualify for maximum rate for unemployment benefits. I do not have any income other than unemployment benefits. My questions are how will my benefits be taxed. Do I have to pay labour market contribution? What will be a tax rate? Your reply will be appreciated. Kind regards, M.M

Answer 1

1

Hi,

thank you for your question.

No, you dont pay labour market contribution of Unemployment benefits.

So, we can calculate your tax rate to be:

tax to the city you live in is in average 25%

tax (the lowest) to the Government is 10,08%

tax to the health system is 2%

So your brutto tax rate will be 37%.

But actually it will be lower, because of the first DKK 45.000 you "earn" (get in benefits) every year you dont pay any tax. (its what we call personfradrag)

So these DKK 45.000 will be deducted, when calculating the actual tax, that will be used on the montly payments to you.

If you have costs that can be deducted in the tax, for instance membership fee to A-kasse, then again this will result in lower tax.

Best regards,

Anders, www.a-kasser.dk

Comments

Hi Anders,

Thank you for your reply. Tax things on unemployment benefit is much clear to me now. As unemployment benefit is an income, do you think I will be given a new tax card based on my benefits.
Thanks again.
M.M

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Hi,

the normal procedure for "update" you tax payments will be to do it your self online by log in to SKAT.dk.
You must change your preliminary income assessment (in danish: "forskudsopgørelse") at SKAT.dk. When you are logged in to SKAT.dk you can change your "Forskudsopgørelse 2017". If your first unemployment benefits will be from last 2017/start 2018 you can wait till you can access "Forskudsopgørelse 2018" (this will be accessible from mid november 2017).

If this gives you trouble - you can off course call SKAT. I am not sure if they can change it for you - but they can guide you when you do it.

Best regards,

Anders