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Work & incomeDenmark

Tax wedge in Denmark

What does employing someone really cost, tax included?

Denmark's tax wedge is 35.76 % #15 of 36 countries on the atlas (lower is better). Period 2025.

35.76%

Checked 8 Sept 2026Period 2025

Source: OECD Taxing Wages + OECD Tax Database

Of every €100 an employer spends on an average single worker, about €36 goes to tax and social contributions before pay-out.

Among 36 countries

1 of 36 countries between 7.46 % and 9.20 %1 of 36 countries between 19.65 % and 21.39 %2 of 36 countries between 21.39 % and 23.14 %1 of 36 countries between 23.14 % and 24.88 %1 of 36 countries between 24.88 % and 26.62 %2 of 36 countries between 26.62 % and 28.36 %1 of 36 countries between 28.36 % and 30.10 %4 of 36 countries between 31.84 % and 33.59 %1 of 36 countries between 33.59 % and 35.33 %3 of 36 countries between 35.33 % and 37.07 %6 of 36 countries between 38.81 % and 40.55 %4 of 36 countries between 40.55 % and 42.30 %3 of 36 countries between 42.30 % and 44.04 %2 of 36 countries between 44.04 % and 45.78 %2 of 36 countries between 45.78 % and 47.52 %2 of 36 countries between 47.52 % and 49.26 %median 39.34 %Denmark: ahead of 58 % of the 36 countries with a published tax wedgeDenmark 35.76 %7.46 %49.26 %
Half of all 36 countries sit between 29.98 % and 41.44 %. Denmark is ahead of 58 % of them. Axis trimmed to the 2nd–98th percentile; 1 value beyond it sits in the end bars.
Rank
#15 of 36
lower is better
Ranked behind
58 %
21 of 36 countries

In Europe: #5 of 25vs median 39.34 %: −3.58 pp (better)

The neighbourhood

#CountryTax wedgevs Denmark
13 Japan33.12 %−2.64 pp
14 Poland35.03 %−0.73 pp
15 Denmark35.76 %
16 Netherlands35.94 %+0.18 pp
17 Norway36.39 %+0.63 pp

Tax wedge for a single average earner (type case, not advice).

How to read this figure

The OECD tax wedge: income tax plus employee AND employer social contributions as a share of total labour cost, for a single person at exactly the average wage. It is a comparable type case between countries — not your personal tax rate.

Next, about Denmark

Tax on payTake-home payAverage monthly salary
Tax wedge, all countries ranked →Compare Denmark with another country →Everything about Denmark
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