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Having never had anyone clearly explain this to me, I'm trying to figure out how much taxes the government wants me to pay. In particular, I'm confused about the concept of a separate "state tax" (possibly called "federal tax" in English) as opposed to more "local" taxes, and how they relate to each other. Or if it exists at all.

Using the Swedish Tax Agency's website and it's "calculate your tax" tool, by inputting where I live, it dumped this output (translated into English by me):

Municipal tax       17.74
Regional tax        12.08
Burial fee      0.065
Total           29.885

In other words, I apparently have to pay ~30% taxes on any incomes.

But as you can see, there is not one word about "state tax" or "federal tax". This makes me worried to say the least. Is there such a tax and when is it paid?

Also, I'm not sure, but is all of this (various kinds of "income taxes") also separate from "capital gains" taxes?

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  • 1
    There are no "states" in Sweden; since you live there, you should know that.
    – RonJohn
    Aug 7, 2021 at 2:34
  • 2
    This questioner apparently knows a lot about the motives of the government while simultaneously professing not to know which level of government to be confused about.
    – Greg Schmidt
    Aug 7, 2021 at 3:40
  • 3
    I've edited the question to be more fact-focused.
    – Jobjörn Folkesson
    Aug 7, 2021 at 10:45

1 Answer 1

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Sweden has three levels of government: local (municipal), regional and state (kingdom-wide). Four if you count the European Union, which is the closest we get to "federal" level. The European Union does not currently levy any income tax.

State income tax is 20%, but only paid on incomes above 537 200 SEK per annum (2021). If you make less than this (a bit more than USD $ 5 100 per month), state tax does not apply to you. More information can be found (in Swedish) at skatteverket.se.

Income from work (as an employee (sv: tjänst) or as running an "enskild firma", roughly similar to "sole proprietorship" (sv: näringsverksamhet)) is taxed separately than income from capital. Capital gains tax is usually 30 %. Exceptions include if you own a majority share of a limited corporation (sv: aktiebolag) or capital gains thorugh an "ISK" (sv: investeringssparkonto, a special form of savings account with beneficial tax rules).

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