Sweden is a country known not only for its high quality of life, but also for its high taxes. In 2025, both residents and temporary workers in Sweden will face various forms of taxation. In this article, we will look at the key aspects of the Swedish tax system.
Who is subject to tax liability in Sweden?
Every person working and doing business in Sweden has an obligation to pay taxes. Failure to fulfil this obligation or incorrect accounting may lead to financial consequences such as administrative penalties and penal interest.
Tax for non-residents – SINK
The tax for non-residents, known as SINK, is a specific taxation system for people who work in Sweden for less than 183 days. The SINK tax rate is 25% and is deducted from the salary by the employer. Persons taxed under SINK are not required to file an annual tax return, but they are not eligible for tax deductions.
Tax for residents
For individuals who are tax residents in Sweden, the tax system consists of two main taxes: municipal tax and state tax. Municipal tax ranges from 29% to 34%, depending on the taxpayer’s place of residence. State tax is 20% on income exceeding SEK 625,800.
Basic tax relief in Sweden
In Sweden, there are many types of tax reliefs for individuals that can significantly reduce their tax burden. The most significant reliefs include:
commuting allowance – available to people who commute at least 20 km (by public transport) or 50 km (by private car) to work: it can cover fuel costs or public transport tickets,
double household allowance: available to people who maintain a second household in Sweden while their family lives in another country – it covers expenses such as rent, maintenance fees, or travel costs between Poland and Sweden,
relief for work-related expenses – applies to costs incurred by the employee themselves, such as work clothing, professional literature, or vocational training.
In order to take advantage of these reliefs, it is necessary to document the expenses incurred, so it is important to keep all invoices and receipts.
Tax-free allowance in Sweden in 2025
Municipal tax in Sweden is a mandatory charge for all persons earning income and depends on the taxpayer’s place of residence. The rates of this tax vary depending on the municipality (commune) and range from 29% to approximately 34%, making it an important element of the country’s tax system. In 2024, the national average municipal tax rate was 32.24%.
State tax in Sweden was introduced with higher-income earners in mind. It only applies to those whose annual earnings exceed SEK 643,100, and the rate is 20% on the amount above this threshold. Those earning less are completely exempt from this tax, which promotes fairness in taxation and supports people with lower incomes. This solution balances the tax system and encourages the effective redistribution of income in society.
The 90% rule – the key to favorable settlement
Poles working in Sweden who are tax residents of that country can apply for these allowances if they earn at least 90% of their global income in Sweden. It is also worth remembering that Poland and Sweden have a double taxation agreement, thanks to which income earned in Sweden is not subject to taxation in Poland, but is taken into account when determining the tax rate for Polish income.
