Denmark Extends Tax Relief for Working Seniors

The Danish government announced on 9 November 2025 that it will extend tax relief for seniors who remain employed to five years, up from the previous two-year period. The measure will be incorporated into the Finance Act for the 2026 fiscal year.

Eligible seniors can receive an annual tax reduction of up to DKK9,500 (about US$1,300), with the amount varying by municipality. The policy aims to keep older workers in the labour market as the population ages.

Authorities estimate the incentive could cut national tax burdens by DKK15 billion, boosting household purchasing power and supporting economic growth. Employers are expected to benefit from the continued availability of senior labour.