Mileage Deduction Increases – Get More Money on Your July Paycheck
Starting in July 2026, commuters in Denmark will get a higher mileage deduction (called a kørselsfradrag). This means you can get more money back from your taxes if you drive a car to work. The new higher deduction applies to all of 2026, so you can benefit from it going back to January – but only once you update your information.
Who Is Affected?
This change applies to everyone who drives to work and claims a mileage deduction. If you are a commuter and have not reported your driving costs to the Danish Tax Agency, or if your information is outdated, you can now get more money back.
What Happened?
On June 25, Denmark's parliament voted to increase the mileage deduction for the entire year 2026. This means the rate (the amount per kilometer you can deduct) has gone up. When you update your information with the Danish Tax Agency, you can get more money in your July paycheck – and you will also get back pay for the months when you should have had the higher deduction.
What Can You Do?
Step 1: Go to skat.dk and find "Tast-Selv" (self-service) or your "2026 preliminary tax assessment."
Step 2: Update or enter how many kilometers you expect to drive to work in 2026.
Step 3: Save your information. You can immediately see how much more you get in deductions.
Once you update it, your employer or the Tax Agency will calculate the higher deduction into your next paycheck.
This text explains what the change means. If you are unsure how to proceed, or if your situation is complicated, it may be wise to ask an accountant or the Danish Tax Agency directly.