Moderate Party Plans Tax Cuts
Photo: Henrik Montgomery/TT

Moderate Party Plans Tax Cuts on Income and Pensions for 2026 Election

The Moderate Party wants to continue reducing tax on labor if they win the election 2026. Also lower tax on pensions, for companies and start-ups is seen as election winners.

The Moderate Party is presenting new proposals on Wednesday ahead of the party's conference in October. The main feature is a new "job deduction", a developed form of employment tax deduction. It's about simplifying the income tax system and merging different tax deductions.

We will merge the basic deduction, earned income deduction, and employment tax deduction into a job deduction where we develop the tax system and significantly simplify it, says Financial Markets Minister Niklas Wykman, who has led a working group on the issue within The Moderate Party.

The Moderate Party also wants to introduce a ladder for national income tax.

It will become easier, clearer, and stronger driving forces to work, he says.

The Moderate Party also proposes a new "worked deduction" which means that work-related pension income should be taxed lower than other pension income, which according to the party should increase the so-called respect distance.

The party also wants to review the corporate tax and expert tax. Also, reduced tax on employee stock options, which affect start-ups, is being reviewed. A reduction in corporate tax was on the table when the government negotiated the autumn budget, but no proposal ever came.

I would have liked to do more on this side, says Finance Minister Elisabeth Svantesson (M).

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AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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