There are many different kinds of taxes in Sweden. Most people pay only local tax on their annual income. This tax rate varies depending on the local authority and ranges, roughly, from 29 to 35 per cent. Sweden's average local tax rate is around 33 per cent.
Earners above a certain income threshold set by the Tax Agency (link in Swedish) pay an additional 20 per cent state tax.
Taxes in Sweden include a so-called basic tax-free allowance, a sum that is exempt from the taxable income. The sum differs depending on whether a person is under or over 65, see link above.
For capital gains, the tax rate is 30 per cent. If you make a profit on your property sale, the profit is taxed at 22 per cent. If you've paid interest on loans and/or mortgages during the year, you're entitled to a tax deduction.
Since 2005, there is no inheritance tax in Sweden, and since 2007, there is no wealth tax.
Foreign citizens who are high earners or are categorised as 'experts', 'researchers' or 'key staff' can apply for a tax relief if they intend to stay in Sweden for a maximum of seven years.
Sweden currently levies a corporate income tax of 20.6 per cent. The country has gradually lowered its corporate tax since 2009, when it was at 28 per cent, to today’s rate.
These steps have been taken both by centre–right and centre–left governments.
