Swedish Tax Deductions: What Expats Can Claim on Their Taxes

Sweden has high taxes, but the system includes several deductions that can significantly reduce your tax bill. As an expat, knowing what you can claim is essential for maximizing your tax return.

How Swedish Tax Deductions Work

In Sweden, there are two main types of tax benefits:

1. Avdrag (Deductions) - Reduce your taxable income
2. Skattereduktion (Tax Credits) - Directly reduce your tax bill

Some deductions happen automatically, while others you must claim on your annual tax return (deklaration).

Automatic vs. Manual Deductions

Type	Examples	Action Needed
Automatic	Basic deduction, work tax credit	None
Reported by employer	Work travel, per diem	Verify correctness
Claim yourself	Home office, commuting, RUT/ROT	Declare manually

The Big Deductions Everyone Gets

1. Basic Deduction (Grundavdrag)

Everyone gets a tax-free basic income amount. For 2026:

Annual Income	Basic Deduction
Up to ~45,000 SEK	0 SEK
~45,000-160,000 SEK	Gradually increases
~160,000-440,000 SEK	~46,000 SEK (maximum)
~440,000-660,400 SEK	Gradually decreases
Above ~660,400 SEK	~18,000 SEK

What it means: A portion of your income is tax-free. This is calculated automatically.

2. Work Tax Credit (Jobbskatteavdrag)

A tax reduction for working individuals. Worth up to ~38,000 SEK per year in reduced taxes.

How it works:

• Calculated automatically based on your work income
• Higher benefit at lower income levels
• Gradually phases out at higher incomes
• Must be working (not receiving unemployment/sick benefits)

3. Municipal Tax Only Below Threshold

You only pay state tax (20%) on income above the breaking point (brytpunkt):

Year	State Tax Threshold
2026	660,400 SEK/year
2026	~55,033 SEK/month

If you earn below the threshold: Only municipal tax (~29-35%) If you earn above: Municipal tax + 20% state tax on the excess

RUT Avdrag - Household Services

RUT (Reparation, Underhåll, Tvätt - Repair, Maintenance, Cleaning) gives you a 50% tax reduction on household services.

What Qualifies for RUT

Service	Eligible	Max Reduction
Cleaning	Yes	50%
Window cleaning	Yes	50%
Laundry	Yes	50%
Cooking	Yes	50%
Garden work	Yes	50%
Snow removal	Yes	50%
Childcare	Yes	50%
Moving services	Yes	50%
IT services (home)	Yes	50%
Pet care (at home)	Yes	50%

RUT Limits 2026

Category	Annual Limit
Standard	75,000 SEK reduction (150,000 SEK in services)
Over 65 years	75,000 SEK reduction

How RUT Works

1. Hire a certified RUT company (F-skatt registered)
2. Pay only 50% of the labor cost
3. Company claims the other 50% from Skatteverket
4. Service must be performed in your Swedish home

Example:

• Cleaning service: 500 SEK/hour
• You pay: 250 SEK/hour
• Skatteverket pays company: 250 SEK/hour

Important: You must have sufficient tax liability to use the deduction. It can only reduce taxes you would otherwise pay.

ROT Avdrag - Home Renovation

ROT (Reparation, Ombyggnad, Tillbyggnad) provides a 30% tax reduction on home renovation labor costs.

What Qualifies for ROT

Work Type	Eligible	Reduction
Painting	Yes	30%
Flooring	Yes	30%
Bathroom renovation	Yes	30%
Kitchen renovation	Yes	30%
Electrical work	Yes	30%
Plumbing	Yes	30%
Extension/addition	Yes	30%
HVAC installation	Yes	30%
Roof work	Yes	30%
Insulation	Yes	30%

ROT Limits 2026

Type	Annual Limit
ROT only	50,000 SEK reduction
Combined RUT + ROT	75,000 SEK total reduction

ROT Requirements

• You must own (or part-own) the property
• Property must be in Sweden
• Building must be older than 5 years
• Company must be F-skatt registered
• Only labor costs count (not materials)
• Work must be performed in Sweden

Example:

• Bathroom renovation total: 80,000 SEK
• Labor portion: 50,000 SEK
• Materials: 30,000 SEK
• ROT reduction (30% of labor): 15,000 SEK
• You pay: 65,000 SEK

ROT for Apartments (Bostadsrätt)

If you own a bostadsrätt (tenant-owned apartment):

• You can use ROT for work inside your unit
• Common area work doesn't qualify
• The apartment association may use ROT for building work (reduces your fees indirectly)

Work-Related Deductions

Commuting Costs (Resor till arbetet)

You can deduct travel costs to work if:

• Distance exceeds 2 km (one way)
• You save at least 2 hours per day by driving vs. public transport
• OR public transport isn't available

Deduction rates 2026:

Transportation	Deduction per km
Own car (gasoline)	25 SEK/mil (10 km)
Own car (diesel)	25 SEK/mil
Own car (electric)	9.50 SEK/mil
Motorcycle	9 SEK/mil
Moped	4.50 SEK/mil

Threshold: Only amounts exceeding 11,000 SEK per year are deductible.

Example:

• Daily commute: 40 km round trip
• Work days per year: 220
• Total distance: 8,800 km = 880 mil
• Deduction: 880 × 25 = 22,000 SEK
• Minus threshold: 22,000 - 11,000 = 11,000 SEK deductible

Home Office Deduction

If you work from home regularly, you may deduct:

Option 1: Simplified method

• 2,000 SEK per year (no documentation needed)
• For those working from home part-time

Option 2: Actual costs

• Proportional share of rent/housing costs
• Proportional utilities
• Must have a dedicated workspace
• Requires documentation

Requirements:

• Employer doesn't provide workspace
• You work from home regularly
• Space is used mainly for work

Work Equipment

If you buy equipment for work that your employer doesn't provide:

Item	Deductible	Notes
Computer	Partial	If mainly for work
Phone	Partial	Work portion only
Office chair	Yes	If for home office
Desk	Yes	If for home office
Work clothes	Yes	Only specialized (uniforms, safety)
Professional literature	Yes	If relevant to work
Professional memberships	Yes	Required for job

Threshold: Only expenses exceeding 5,000 SEK per year are deductible.

Business Travel (Tjänsteresor)

If your employer doesn't reimburse fully, you can deduct:

Expense	Deduction
Car usage	25 SEK/mil
Per diem (domestic)	Up to 260 SEK/day
Per diem (foreign)	Varies by country
Accommodation	Actual cost if not reimbursed

Interest Deductions

Mortgage Interest (Ränteavdrag)

Interest on loans is deductible:

Interest Amount	Deduction Rate
Up to 100,000 SEK/year	30%
Above 100,000 SEK/year	21%

Example:

• Annual mortgage interest: 80,000 SEK
• Tax reduction: 80,000 × 30% = 24,000 SEK

This applies to:

• Housing loans (bostadslån)
• Student loans (studielån)
• Personal loans
• Credit card debt

Automatic: Banks report interest to Skatteverket. It appears pre-filled in your tax return.

Negative Capital Income

If your deductible interest exceeds your capital income (dividends, rental income, etc.):

• The deficit reduces your income tax
• 30% reduction on deficits up to 100,000 SEK
• 21% on amounts above

Investment Deductions

ISK Account (Investeringssparkonto)

Not a deduction, but a tax-efficient way to invest:

• Flat annual tax based on account value
• No tax on gains when selling
• No tax on dividends within account
• Currently ~0.8-1% per year

Capital Gains Deferral

When selling a home, you can defer capital gains tax by:

• Buying a new primary residence
• Requesting "uppskov" (deferral)
• Tax paid gradually when selling the new home

Charitable Donations

Sweden offers limited charity deductions:

Requirement	Details
Minimum donation	200 SEK per donation
Maximum deduction	6,000 SEK per year
Tax reduction	25% of donation
Approved organizations	Must be Skatteverket-approved

Example:

• Annual donations: 6,000 SEK
• Tax reduction: 6,000 × 25% = 1,500 SEK

Note: The charity must be registered with Skatteverket. Check their list of approved organizations.

Deductions for Parents

Child Allowance

Not a tax deduction, but a direct payment:

• 1,250 SEK per month per child
• Automatic from Försäkringskassan
• No tax to pay on it

Childcare Costs (Maxtaxa)

Sweden subsidizes childcare directly rather than through tax deductions:

• Maximum ~1,688 SEK/month for first child
• Reduced rates for additional children
• Income-based subsidies built in

How to Claim Deductions

Automatic Deductions

These appear pre-filled in your tax return:

• Basic deduction (grundavdrag)
• Work tax credit (jobbskatteavdrag)
• Interest paid (from bank reports)
• Union dues (if paid through salary)
• Pension contributions

Manual Claims

Add these yourself in your deklaration:

• Commuting costs
• Home office expenses
• Work equipment
• ROT/RUT (usually auto-filled if company reported)
• Business travel (if not reimbursed)
• Charitable donations

Required Documentation

Keep records for 7 years:

• Receipts for all claimed expenses
• Employer statement for unreimbursed costs
• Distance calculations for commuting
• Work-from-home agreements

Tax Return Timeline

Date	Action
March	Receive pre-filled deklaration
March-April	Review and add deductions
May 2	Deadline for most returns
August-December	Refund or payment notice

How to File

1. Log in to Skatteverket via BankID
2. Review pre-filled information
3. Add additional deductions in appropriate sections
4. Submit (can be as simple as clicking "approve")

Expat-Specific Considerations

SINK Tax (Special Income Tax)

If you're on temporary assignment, you may qualify for SINK:

• Flat 25% tax rate
• No deductions allowed
• Simpler, but sometimes worse

Expert Tax Relief (Expertskatt)

For highly skilled workers or researchers:

• 25% of salary tax-free for first 7 years
• Must apply within 3 months of starting work
• Significant tax savings

Foreign Tax Credit

If you pay taxes abroad:

• Sweden may credit foreign taxes paid
• Avoids double taxation
• Complex - consult a tax advisor

Common Mistakes to Avoid

1. Missing RUT/ROT - Check that service providers reported correctly
2. Ignoring commute deductions - Calculate if you might qualify
3. Not claiming work equipment - If you bought items for work
4. Overlooking interest - Verify all loans are reported
5. Accepting pre-filled errors - Always review, don't just approve

Summary

Key deductions for expats in Sweden:

Deduction	Potential Savings	Effort Required
Basic deduction + Work tax credit	Up to ~50,000 SEK/year	Automatic
RUT (cleaning, etc.)	Up to 75,000 SEK/year	Low (company handles)
ROT (renovation)	Up to 50,000 SEK/year	Low (company handles)
Mortgage interest	21-30% of interest	Automatic
Commuting	Varies	Medium (must calculate)
Home office	2,000+ SEK	Medium

Action items:

1. Use RUT-certified companies for household services
2. Plan renovations to maximize ROT
3. Track commuting if you drive to work
4. Set up home office properly if working remotely
5. Review your deklaration carefully in spring

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Want to see how taxes affect your take-home pay? Use our Swedish Salary Calculator to calculate your net salary.