The average salary of privately employed white-collar employees is SEK 34 500 per month (2009). Within the public sector, central government employees earn on average SEK 29 200, county employees SEK 27 900 and municipal employees SEK 23 100 per month (2009). Men generally earn more than women, usually because men and women work in different professions and women are more likely than men to work part time.

The Swedish tax system consists of a number of direct and indirect taxes and charges. The most important direct taxes are national and municipal income tax and national capital tax. The most important indirect taxes are VAT and excise duties on certain products, such as alcohol and tobacco. Almost all goods and services are subject to VAT, and the rate of VAT is normally 25 per cent of the price. 

Income below SEK 18 199 per year is tax free. 

The majority of the income tax paid by natural persons goes to the municipalities. If your income exceeds SEK 367 600 (2009) you must also pay national income tax at 20 per cent on the amount in excess of this. You pay 25 per cent national tax on income in excess of SEK 526 200. Municipal income tax is proportional and, depending on the municipality, is between 28 and 33 per cent, with a average rate of 31 per cent. Most people only pay municipal tax. Social insurance contributions are paid by the employer via employers’ contributions. There are therefore no additional deductions from wages. 

Income tax is also paid on unemployment benefits, sick pay, pensions and similar sources of income. 

Both natural and legal persons are obliged to file an income tax return each year, usually around 1 May. 

Fact sheets on taxes in Sweden can be ordered from Skatteverket (National Tax Board).

Text last edited on: 11/2009