Wealthy Stockholm suburb hit with surprise tax increase

A home in Danderyd. Photo: Henrik Montgomery/TT

Taxpayers in Danderyd have been hit with a new income tax increase that will see them paying an extra 1.4 kronor in taxes for every 100 kronor they earn beginning next year. The average annual income in the municipality was 517,800 kronor in 2017.

With the tax hike, Danderyd will lose its status as one of Sweden's five least-taxed municipalities. The tax rate in the ritzy suburb will climb to 31.03 percent in 2020, a significant jump from its current 29.63 rate and much closer to the national average of 32.19 percent.

In Sweden, local tax rates consist of two parts: taxes paid the municipality (kommun) in which one lives and taxes paid to the region (landsting).

READ ALSO:

While the tax increase will kick Danderyd off the list of the municipalities with the lowest tax rates, it still has quite a way to go before approaching Sweden's highest municipal tax rate. That honour goes to Dorotea Municipality in Lapland, where residents have a 35.15 rate.

The Danderyd tax hike is a result of the Moderate-led municipality board's policies, which according to broadcaster SVT would result in a 220 million kronor deficit by thRead More – Source

thelocal.eu