Economy & Tax
The Danish economy is in an unusually strong position in 2024, with positive fiscal sustainability but labour-market capacity pressures. The tax burden stands at 45.6% of GDP, funding the universal welfare state.
SUMMARY
The Danish economy is in an unusually strong position in 2024, with positive fiscal sustainability but labour-market capacity pressures. The tax burden stands at 45.6% of GDP, funding the universal welfare state. Tax burden (% of GDP, 2024): 45.6% (Danmarks Statistik 2024). Avg. final tax per taxpayer (2024): DKK 112,569 (Danmarks Statistik 2024).
KEY FIGURES
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EVIDENCE BASE
Denmark's tax burden was 45.6% of GDP in 2024 -- one of the highest in the world, funding free healthcare, education and social benefits.
The average final tax bill rose from DKK 105,138 (2023) to DKK 112,569 (2024), corresponding to a 4.9% income increase to an average of DKK 414,900.
The fiscal sustainability indicator (HBI) was revised upward to 1.5% of GDP in 2024 -- a significant improvement indicating that the welfare model is funded indefinitely under current assumptions.
The effect of lower top-rate income tax on growth and labour supply is debated among economists. Research shows limited behavioural effects from marginal adjustments.
STATISTICS AND DATA
PARTY POSITIONS
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