Employment Tax

Sweden | Budget for 2026

Summary

On 22 September 2025, the Swedish Government presented the Budget Bill for 2026. The Government is now focusing on breaking the recession and strengthening Swedes’ finances. The budget focuses on areas to achieve more money in people’s pockets, strengthening the work-first principle and reducing social exclusion and investments in welfare and security.

The detail

Below is a summary of key points of the Government’s tax proposals regarding employment income. Unless otherwise stated, the proposals are intended to take effect from 1 January 2026.

1. Reduced social security contributions for young people. Temporary reduced employer contributions for young people from the year they turn 19 until the year they turn 23. Proposed to apply from 1 April 2026 to 30 September 2027.
2. Lower tax on earned income, pensions, and sickness and activity compensation. This through a strengthened earned income tax credit, an increased basic allowance and a tax reduction for sickness and activity compensation.
3. Tax exemption for job bonus (“jobbpremie”).
4. Lower tax for non-residents. The special income tax for non-residents will be reduced from 25 per cent to 22.5 per cent of taxable income from 1 January 2026 and to 20 per cent from 1 January 2027.
5. Permanent tax exemption for workplace charging of electric vehicles and extended right to deduct fuel expenses. The temporary tax exemption for workplace charging is proposed to be made permanent.
6. Increased deduction threshold for travel to and from work. The threshold for deductible costs for travel between home and workplace will be raised from SEK 11,000 to SEK 15,000. This also applies to travel to educational places and to assignment travel.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Alice Moon
Tax Director

Magnus Westman
Tax Director

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