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The corporate tax in Sweden rate as of 2022 is 20.6%
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:
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 social security contributions in Sweden are 31.42% of employee salary.
Employees must pay 7% of their income for the state pension. However, this is usually completely offset by a corresponding tax reduction.
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.
The tax bureau of Sweden is called the Skatteverket, or Swedish Tax Agency.
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:
For employees, the national payroll tax system is progressive:
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.