Swedish taxes: an introduction for cross-border commuters

SINK: a tax for commuters

If you commute daily between your home in Denmark and your workplace in Sweden, you usually have limited tax liability in Sweden. In most cases, you should apply for SINK tax (Special Income Tax for Non-Residents), which is a flat tax rate of 22,5 % for the 2026 income year.

SINK tax is a flat-rate tax, which means you are not entitled to deductions and do not need to file a Swedish tax return. You must apply for SINK taxation each year before the end of the year.

As a cross-border commuter, you can also choose to be taxed under the ordinary Swedish income tax system instead of SINK tax. In that case, your tax rate depends on your income, you are entitled to deductions and you must file a tax return.

To qualify for the full range of deductions, at least 90 % of your annual income must be taxed in Sweden.

Ordinary income tax in Sweden

If you live in Sweden or stay there regularly, you have unlimited tax liability in Sweden. You are considered to stay regularly if you are in Sweden for six consecutive months or more. Short trips outside Sweden do not interrupt your stay.

If you have unlimited tax liability in Sweden, your salary and other employment income are taxed under the ordinary income tax system (A-tax). You must file a Swedish tax return each year and report all your income.

Your tax rate depends on your income level. You pay municipal tax and, if your income is high enough, national income tax. You are also entitled to deductions.

If you commute daily between Denmark and Sweden, or stay in Sweden for less than six months, you can choose ordinary income tax instead of SINK tax. This gives you access to deductions, such as travel expenses between home and work.

If at least 90 % of your total earned income during the year is taxed in Sweden, you may also qualify for personal deductions, such as the basic allowance and earned income tax credit.

You should be aware that Danish tax rules may also affect your deductions. For example, you can only deduct interest expenses in Sweden if you were not able to deduct them in Denmark.

To choose ordinary income tax instead of SINK tax, use the same e-service as for SINK applications. In the application form, select A-tax when asked how you would like to be taxed.

Read about filing a tax return at skatteverket.se

Read about SINK tax at skatteverket.se

Tax when working remotely

As a general rule, salary is taxed in the country where the work is performed. However, under the Øresund Agreement between Sweden and Denmark, your salary may still be taxed in Sweden if you occasionally work remotely from Denmark or go on temporary business trips, provided certain conditions are met.

From 2025, the Øresund Agreement covers both private and public sector employees.

See our page about tax when working remotely

Tax on a Swedish company car

If you commute and pay SINK tax, you pay 22,5 % tax (2026) on the taxable benefit of using a Danish or Swedish company car.

If you instead pay ordinary Swedish income tax, the taxable benefit is taxed at the same rate as your other income. This means the actual tax you pay depends on your overall income level.