Key Highlights from the 2026 Government Budget Proposals

The Government is presenting its budget for 2026 in the Parliament today. Here are the most important new proposals.

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Key Highlights from the 2026 Government Budget Proposals
Photo: Henrik Montgomery/TT

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New job tax deduction: For a person with 35,000 kronor per month, it gives 333 kronor more in the wallet.

Reduced tax for pensioners: For a pension of 24,700 kronor per month, the tax is reduced by 156 kronor.

Reduced tax on sickness and activity compensation: Gives between 1,500 and 6,000 kronor in lower tax per year, depending on the compensation level.

Reduced food VAT: Reduced from 12 to 6 percent, temporarily from April 1, 2026 to December 31, 2027.

Reduced electricity tax: Reduced by 9.875 öre per kWh. Gives approximately 1,000 kronor per year in lower electricity costs for a non-electrically heated house and 2,000 kronor for an electrically heated one. A time-limited high-cost protection against high electricity prices will also be introduced.

Lower preschool fee: The fee is reduced within the framework of the maximum tax from July 1, 2026. Can mean 4,500 kronor in lower fee per year for a two-child family.

Increased ceiling in housing allowance: Means up to 1,000 kronor more per month for families with two or more children.

Benefit reform: Social benefits are tightened from 2027, especially for families with more than three children. Activity requirements for benefits and job premium for those who start working from July 1, 2026.

Reduced employer contribution for young people: Reduced temporarily by one-third for 19-23 year olds from April 1, 2026 to September 30, 2027.

Health care: 6.9 billion kronor goes to, among other things, shorter healthcare queues, improved care for women and strengthened care for mental health.

School: 3.3 billion kronor goes to increased resources in school and preschool.

Crime prevention: The Prison and Probation Service receives 860 million kronor for the work of creating more prison places. 880 million goes to preventive measures for young people, including SIS homes.

Defense: The military defense receives significant reinforcements, but is loan-financed outside the state budget.

These new initiatives in the budget for 2026, the so-called reform space, amount to approximately 79 billion kronor net. The budget also includes savings of 1.5 billion.

The assessments of the proposals' effects are based on the government's calculations.

Where the new initiatives in the budget for 2026 go

TT

HOUSEHOLDS: 47.60 billion kronor, of which:

New job tax deduction: 21.4 billion kronor

Reduced food VAT: 15.94 billion kronor

Reduced electricity tax: 6.52 billion kronor

High-cost protection for electricity prices: 1 billion kronor

Reduced preschool fee: 1 billion kronor

Increased ceiling in housing allowance: 0.73 billion kronor

Reduced tax for Swedes abroad: 0.34 billion kronor

Abolished vehicle tax for caravans: 0.19 billion kronor

WELFARE: 10.4 billion kronor

School: 3.3 billion kronor

Health care: 5.9 billion kronor

Dental care: 1 billion kronor

Increased quality in elderly care: 0.21 billion kronor

ENTREPRENEURSHIP: 9.4 billion kronor

Reduced employer contribution for young people: 6.05 billion kronor

More favorable tax rules for small businesses: 1 billion kronor

Support for agriculture: 1 billion kronor

AI and digitalization: 0.54 billion kronor

CRIME PREVENTION: 2.6 billion kronor

Prison and Probation Service: 0.86 billion kronor

SIS homes, etc.: 0.88 billion kronor

Measures against criminals' economy: 0.66 billion kronor

ENVIRONMENT AND CLIMATE: 3.5 billion kronor

Climate leap: 1.5 billion kronor

Protection of nature and sea: 0.76 billion kronor

Energy efficiency of small houses: 0.3 billion kronor

OTHER: 6.7 billion kronor

Benefit reform: 1.45 billion kronor

Civil defense: 1.22 billion kronor

Strengthened cyber security: 0.37 billion kronor

Migration and integration: 0.4 billion kronor

Initiatives for reduced unemployment: 0.64 billion kronor

Support for more sports facilities: 0.25 billion kronor

Reduced dance band VAT: 0.22 billion kronor

SAVINGS: -1.5 billion kronor

TOTAL AMOUNT, NET: approximately 79 billion kronor

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

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