Payroll taxes in
Sweden.

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:

• Employer social security contributions: 31.42% of employee salary
• Corporate tax rate of 20.6%

For employees, the national payroll tax system is progressive:

• 0 to SEK 523,200 → 0%
• SEK 523,200 and above → 20% (of the amount in this bracket)

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.