When the government presented its budget last autumn, reforms worth around 60 billion kronor were presented, with nearly half of them being tax cuts for households. Here are some changes that will have a direct impact on the wallet:
Job tax deduction
To strengthen households' purchasing power, a new job tax deduction is being introduced. According to the government, everyone earning over 16,000 kronor per month will receive a tax cut. On average, this means around 2,600 kronor less in tax per year, according to their calculations.
Furthermore, the phase-out of the job tax deduction is being abolished, which means that the marginal tax rate will be reduced from 55 to 52 percent. This change benefits those with a salary of 65,000 kronor and up to around 180,000 kronor per month.
Lower tax on ISK
From the turn of the year, savings in an investment savings account (ISK) and capital insurance will be tax-free up to 150,000 kronor. From 2026, this limit will be increased to 300,000 kronor.
Lower tax for pensioners
Tax will be reduced for pensioners from next year. A median pensioner can expect a tax cut of 1,400 kronor per year, according to the government.
Furthermore, the income pension will be increased by 4 percent, according to the Pensions Agency's calculations. Those with an income pension of 18,000 kronor will receive 720 kronor more from January 1, 2025. For those with a guarantee pension, this means an increase of 2.6 percent.
Lower diesel and petrol prices
The tax on petrol and diesel will be reduced from January 1, 2025. Furthermore, there will be an additional reduction on July 1, 2025, in connection with the increase in the reduction obligation. For example, the price of petrol will be reduced by 75 öre, according to the government's assessment. The tax rates will also apply in 2026.
Increased tax on electricity
From the turn of the year, the tax on electricity will be increased – from 42.8 öre per kilowatt-hour to 43.9 öre per kilowatt-hour (nearly 55 öre per kilowatt-hour including VAT).
Higher threshold for income tax
The threshold for when state income tax should be paid will be increased at the turn of the year. In connection with the budget in September, the government announced that the amount will be increased to 53,590 kronor. For 2024, it has been 51,275 kronor.
Interest deduction on unsecured loans
Interest deductions on unsecured loans will be phased out over two years, starting on January 1, 2025. The government's decision is due to the increasing indebtedness among Swedes. The interest deduction will be halved for the 2025 tax year and abolished entirely in 2026.
Abolished air travel tax
The so-called air travel tax will be abolished from July 1 next year. For those buying a flight ticket for travel within Sweden, this means a reduced cost of around 80 kronor, according to the government's calculations.
Housing allowance extended
The temporary additional allowance for housing allowance will be extended until June 2025, but at a level of 25 percent of the preliminary housing allowance.
