Payroll taxes in
Sweden.

SALARY PAYMENT IN Swedish Krona (SEK, kr)

CONTRACT LANGUAGES Swedish / English

PAYROLL TAX 31.42%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
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What is the average employer tax rate in Sweden?

The corporate tax in Sweden rate as of 2022 is 20.6%

What is the average employee tax rate in Sweden?

Income tax in Sweden is divided into a municipal tax and a national tax. The municipal rate varies depending on the municipality, but the average is 32.28%.

The national rate tax rate is progressive:

0 to 523,200 → 0%
523,200 and above → 20% (of the amount in this bracket)

A special tax rate of 25% exists for employees who are non-residents in Sweden (residing in Sweden for fewer than six months per year). This is known as SINK.

Employer contributions in Sweden

Employer social security contributions in Sweden are 31.42% of employee salary.

Employee contributions in Sweden

Employees must pay 7% of their income for the state pension. However, this is usually completely offset by a corresponding tax reduction.

Hiring in Sweden, Made Easy

Your business can easily hire employees in Sweden without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 185 countries worldwide. All you need to do is focus on your business.

FAQs

What is the tax bureau of Sweden called?

The tax bureau of Sweden is called the Skatteverket, or Swedish Tax Agency.

Is there an employer payroll tax contribution in Sweden?

While there is no payroll tax contribution in Sweden (i.e. there is no tax on an employee’s payroll like you would seee in the United States), there are the following taxes that employers must pay:

Employer social security contributions: 31.42% of employee salary
Corporate tax rate of 20.6%

How does the payroll tax system of Sweden work?

For employees, the national payroll tax system is progressive:

0 to SEK 523,200 → 0%
SEK 523,200 and above → 20% (of the amount in this bracket)

Employees must also pay municipal taxes; this amount will vary depending on exactly where the employee is located, but the average municipal rate is 32.28%.

Employees also contribute 7% of their income for the state pension.

There is also a special flat tax rate of 25% for employees who are non-residents of Sweden who have been located in Sweden for less than 6 months, called the SINK. Qualifying employees are able to apply (or their employers may apply on their behalf). If you hire or plan to hire foreign-nationals to work in Sweden, let us know and we can assess whether they are eligible to apply for SINK.

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"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

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