The tax rate will go up, but overall the tax on savings for many will decrease, says Stefan Westerberg, private economist at Länsförsäkringar.
The tax-free savings amount on ISK and endowment insurance will be increased from SEK 150,000 to SEK 300,000 at the turn of the year.
The tax for next year is based on the government loan interest rate set on November 27. Based on the current government loan interest rate, 2.55 percent, the effective ISK tax will end up at 1.065 percent in 2026 according to the formula used, up from 0.888 percent this year.
“Increases incentives”
This means that a person who has 500,000 kronor in ISK savings will pay 2,130 kronor in tax, which is 978 kronor lower than this year's level, according to Länsförsäkringar's calculations.
The explanation is the increased tax-free amount.
This increases the incentive to save and increases the attractiveness of ISK and endowment insurance as a form of savings, says Stefan Westerberg.
A person with 350,000 kronor in savings will receive 1,244 kronor less in tax, while the tax for a person with one million kronor in their savings will only decrease by 93 kronor. After that, the tax will begin to rise compared to this year's level.
According to the Swedish Tax Agency, just over 4 million taxpayers had ISK in 2024. The number of people with a total value of more than SEK 300,000 was just over 1.17 million. The average value of Swedes' ISK savings was SEK 617,973.
“Affordable form of savings”
Is there a situation, based on the new rules, when you should review your ISK savings?
No, generally speaking, ISK is a favorable form of savings because it is so incredibly simple. Now with the new tax rules, it becomes very advantageous in terms of tax, says Westerberg.
The government's goal is for more people to save, and the tax cut on ISK, which will be fully implemented next year, is estimated to cost SEK 7 billion a year from 2026 onwards according to last year's autumn budget.
Profits on ISK are not taxed. Instead, an annual flat rate tax is paid on the total value of the account.
The tax level for the following year is based on the government loan interest rate on November 30 of the current year.
The tax is calculated from a formula where one percentage point is added to the government loan interest rate (1.96+1=2.96 for 2025 and provisionally 2.55+1=3.55 for 2026). The tax then amounts to 30 percent of that.
For 2025, the tax applies to amounts over SEK 150,000. In 2026, the tax-free level will be raised to SEK 300,000.
In 2024, 4,002,681 taxpayers had ISK, according to the Swedish Tax Agency. 1,175,772 of them had over 300,000 kronor in value in their accounts.
