Lower taxes: income and ISK savings

How taxes were lowered

In September 2024, the government and the Sweden Democrats presented several economic reforms in the budget for 2025. The reforms have been implemented, and since 1 January 2026 the tax-free threshold for an investment savings account (ISK) has been SEK 300 000. The focus is on strengthening households' purchasing power through tax cuts for both working people and pensioners, and on making saving more advantageous.

New earned income tax credit lowers income tax

One of the most far-reaching changes is a new earned income tax credit (jobbskatteavdrag), which means lower income tax for everyone earning more than SEK 16 000 a month. The reform was aimed particularly at middle-income earners, with a person on a monthly salary of SEK 40 000 noticing the biggest difference. However, the effect decreases for higher incomes.

According to Finance Minister Svantesson, the reform aimed to strengthen household finances and encourage more people to work.

“Work should pay, and we want to give people more money in their pockets,” Svantesson commented at the press conference.

Taxes are also lowered for pensioners

Pensioners are also covered by the reforms: those with a median income can expect their tax to fall by around SEK 1 400 a year, or SEK 117 a month. This step gave older people some financial relief and increased their disposable income.

Tax-free saving in an ISK

Another new measure concerns investment savings accounts (ISK). The government introduced a tax-free threshold for savings of up to SEK 150 000 from 2025. In 2026, this limit was raised further to SEK 300 000. This means that savers with small to medium-sized amounts can save without having to pay the standardised tax (schablonskatt) within these limits.

Extended supplementary allowance for low-income earners

Do you need advice?

Would you like to see how the changes affect your salary or dividend? Our advisory service can help you work it out.