Tax
Worldwide income, municipal plus state tax, and 25% VAT
Residents are taxed on worldwide income through a flat municipal tax plus a state surtax on higher incomes, administered by the Tax Agency. Standard VAT is 25%, and inheritance and wealth taxes have been abolished.
Key rules
- Municipal income tax is flat; a state tax adds a surcharge above a threshold.
- Standard VAT is 25% (12% and 6% reduced rates).
- Sweden has no inheritance, gift or net wealth tax.
Governing law
- Income Tax Act (Inkomstskattelagen)
- VAT Act (Mervärdesskattelagen)
Penalties and consequences
- Tax surcharges and interest; criminal liability for serious evasion
In practice
The abolition of wealth and inheritance taxes makes Sweden's headline high income taxes less burdensome for capital transfers than many assume.