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What are the marginal national income tax rates in Sweden for 2024?
Executive Summary
Sweden’s 2024 national (state) income tax for residents is most consistently reported as a 20% surcharge on taxable earned income above a high threshold, with municipal taxes (averaging about 32%) applied below and above that threshold; this produces combined marginal rates that vary depending on local municipal rates [1] [2]. Conflicting analyses report different thresholds and composite marginal rates—some cite thresholds near SEK 598,500, others near SEK 614,000 or SEK 625,800—because sources mix state-only rates, municipal averages, and combined marginal rates or reference nonresident flat taxation [1] [3] [4].
1. Why the simple headline “20% state tax” is true — and what it actually means for earners
Multiple analyses converge on the same policy design: Sweden charges a state (national) tax of roughly 20% on earned income above a specified high threshold in 2024, while income below that threshold is taxed only at the municipal level (average around 32%) [1] [2]. The key practical implication is that the marginal increase in state tax when a resident’s taxable earned income exceeds the threshold is +20 percentage points, not that a taxpayer suddenly pays only 20% total. Municipal taxes remain payable on all taxable earned income, so a high‑earner’s combined marginal tax rate will be roughly municipal rate plus 20%, and that combined figure varies by municipality because municipal rates range from about 29% to 35% [2]. This explains why some presentations emphasize a “20% national rate” while others report combined marginal rates near or above 50% [1] [2].
2. Why different sources give different thresholds (SEK 598,500 vs 614,000 vs 625,800)
The analyses in the dataset show inconsistent threshold figures for when the 20% state surcharge kicks in: KPMG’s February 2024 guide lists SEK 598,500 [1], another table references SEK 614,000.01 [3], and a separate summary cites SEK 625,800 in a 2025 context [4]. These discrepancies arise from differences in the underlying tax tables used, rounding conventions, whether the figure quoted is taxable income or gross employment income, and timing—some summaries reflect 2025 adjustments [4] [3]. Analysts and aggregators sometimes report a rounded or slightly updated threshold after budget processes; therefore, the exact numeric cutoff can vary by source even though the structural rule (20% above a high threshold) is stable [1] [3].
3. Why some analyses list much higher marginal rates (50%–60%) and complex brackets
Several analyses in the dataset present a ladder of marginal rates reaching 54–60% for very high incomes [5] [6]. These figures do not represent a separate national tax schedule but instead reflect combined marginal tax burdens when municipal taxes, the state surcharge, social contributions, and bracket interactions or loss of credits are aggregated. One dataset appears to show an itemized marginal-rate table with small-step bands and very high top‑marginal percentages — likely the result of stacking municipal rates with national tax plus other statutory levies or effective taxation at specific income intervals [5]. The practical reading is that nominal state tax is 20%, but combined marginal rates for residents can exceed 50% depending on municipality and whether other surtaxes or benefit withdrawals apply [2] [5].
4. How non‑residents fit into the picture and potential reporting agendas
Analyses consistently note that non‑resident employees are typically taxed at a flat rate (commonly cited as 25%) on Swedish employment income, which is a distinct rule from resident state/municipal taxation [1] [4]. Some summaries emphasize high composite marginal rates possibly to highlight Sweden’s high-tax reputation, while professional tax guides (e.g., KPMG) focus on the state surcharge threshold and municipal averages for practical compliance guidance [1]. Users should therefore flag the agenda behind a statistic: advocates or commentators may present the highest combined marginal figure to make a political point, whereas tax-practice sources emphasize the statutory state rate and thresholds for payroll and planning [1] [6].
5. Bottom line: what to rely on for 2024 tax planning
For practical accuracy in 2024, rely on the structural fact that Sweden levies a 20% state tax on taxable earned income above a high threshold, and municipal tax (around 32% on average) applies to all taxable earned income—producing combined marginal rates roughly municipal +20% [1] [2]. If you need the precise numeric cutoff to the krona for a specific filing or payroll calculation, use an official 2024 Swedish tax table or a professional tax guide for 2024 (note the dataset shows at least three reported threshold figures: SEK 598,500; SEK 614,000.01; and a later 625,800 reference for 2025), and be aware that non‑residents face a separate flat rate regime [1] [3] [4].