When you get your first job it’s important you look into how to pay tax. 

Each year, you may earn up to a certain amount without having to pay tax. If you earn less than this amount, you need to get a tax exemption card (frikort). If you earn more than this amount, you need to get two tax cards - a primary and a secondary tax card.
When you turn 15, we will automatically create a tax exemption card for you.
Your tax exemption card is electronic - it is not a physical card.

Tax exemption card

A tax exemption card tells you how much you can earn without having to pay tax.
Therefore, you need to use a tax exemption card if your expected income in a particular year is under the amount you can earn without having to pay tax. This is typically when you are young and get your first job or if you are a student living at home and you don’t work, but get a student grant (SU).

You only need to start paying tax when your total income in a year is higher than the amount stated on your tax exemption card. The only thing you need to pay is 8% labour market contributions (am-bidrag) on your income - even if you have a tax exemption card.
Your tax exemption card can be used by several employers or others paying you money. Once your income reaches the maximum amount stated on your tax exemption card, the tax rate shown on your preliminary income assessment will be used to tax any further income you have. The Danish Tax Agency automatically releases your tax rate to any employers etc. you have.
In our online system E-tax (TastSelv) you can check if you have a tax exemption card and the amount you are allowed to earn before you have to start paying tax. You can also see which employers are using your tax exemption card when they pay you. 

If you don’t have a tax exemption card, you can follow this step-by-step guide to getting one. You are also welcome to call us if you need help. Our number is (+45) 72 22 27 95. Or chat with us on this website.

When the new year begins, we usually generate a new tax exemption card for you.

Primary and secondary tax cards

When you have earned up to the maximum amount stated on your tax exemption card, you need to use your primary tax card. Your primary card card is used for your primary income, for example your student grant (SU) or your job.
If your student grant or an employer is already using your primary tax card, you have to use your secondary tax card for any other income.

See the infographics (in Danish) Understanding your tax card 
Read more about the primary tax card, secondary tax card and tax exemption card. 

Check to see who is using your tax cards

Log on to E-tax (TastSelv) to see who is using your primary, secondary and tax exemption cards by clicking Søg i indkomstoplysninger (Search income information).
Log on to E-tax (TastSelv)

In order to log on to E-tax, you need to use NemID or an E-tax password:
If you are 15 and over, you need to use NemID - order NemID .
If you are under 15, you need to use an E-tax password - order an E-tax password.

It varies from person to person how much you can earn in a year without paying tax. It depends on your tax deductions, which again depend on your personal situation.

If you are under 18, the amount you can earn without paying tax is normally DKK 36,100 (2020). From the year you turn 18, this amount is normally DKK 46,500 (2020).

At the top of your preliminary income assessment you can see which amount applies to you. If you have a tax exemption card, the amount stated shows how much you can earn in a year without paying tax.
If you have a primary tax card, this is stated as a tax deduction to show how much you can earn per month or every two weeks without paying tax.

You always need to pay 8% labour market contributions on your income (however, not on student grants, unemployment benefits and pension contributions).

You must inform your employer which tax card (tax exemption card, primary or secondary tax card) your employer should use when paying your salary.

Please note that your primary tax card can only be used by one employer etc. (for example your employer or your student grant).
Your primary tax card must be used for your main income. If you have more than one job, or if you receive a student grant along with your job, you must also use your secondary tax card.

You can use your secondary tax card for income from more than one provider. Only your tax rate is stated on it. When an employer etc. uses your secondary tax card, they will deduct full tax before paying you your income.

The tax-free amount you can earn using your tax exemption card is distributed on all 12 months of the year; this is known as a monthly deduction. Each month when you make money working, your employer will use your primary tax card and thereby your monthly deduction.
Your monthly deduction will increase along with your salary so it’s important to update your preliminary income assessment to reflect the salary you expect to earn.

The reason why your monthly deduction increases with your salary is that you get an employment allowance when you work. This varies depending on how much you earn.
If you have other deductions and allowances (such as deduction for transport between home and work), your monthly deduction will also increase. 

Here is a step-by-step guide to correcting your preliminary income assessment:

How to correct your preliminary income assessment

If your tax deduction has been too high, you will have outstanding tax, which means that you have to pay back money to the Danish Tax Agency.

Each year in March, you can check your tax assessment notice to see whether you paid too much or too little tax during the past year.
If you paid too much tax, you will get a tax refund, which we will transfer to your NemKonto in April.
It’s therefore important to make sure you have a valid NemKonto.

Read more in Danish about young people and NemKonto.

The best way to avoid outstanding tax (tax you owe us) is to update your income in your preliminary income assessment in E-tax. You can update your preliminary income assessment several times a year so that it is as precise as possible.  You can use this step-by-step guide to E-tax (TastSelv).

The employment allowance you get when you work will change as your income increases or falls. For that reason, it’s better that you estimate your income to be a bit too low than a bit too high.

If it turns out that your allowance was too high, you will have to pay back money as outstanding tax. If you have outstanding tax, you can see how much you have to pay in your tax assessment notice each year in March.

Another reason why you may risk having to pay outstanding tax is if you have more than one employer or maybe work and get a student grant as well, and your primary tax card is used for both incomes by mistake.
Your primary tax card should only be used for your main income (for example your student grant). You should then use your secondary tax card for any job you may have as well. Tell your employer which tax card to use.

Read about student grant (SU) and tax

If you are under 16, you can work in private homes (for example cut the grass or babysit for your neighbour) without having to pay tax on what you earn. You don’t need a tax exemption card for that.
If you work for a business, you must pay tax regardless of how old you are.