Denmark to raise travel deduction for 1.1 million commuters

The Danish government will propose a temporary increase in the travel deduction, also known as the commuter tax allowance, benefiting 1.1 million people, according to a press release from the Ministry of Taxation and Growth.

The change, intended to ease fuel costs, would apply for the remainder of the year and provide an average tax relief of 2,300 kroner for a typical commuter. The government aims to fast-track the proposal before the summer recess.

“Many Danes are struggling to afford fuel,” said Taxation and Growth Minister Jakob Engel-Schmidt. “This affects their opportunities for themselves and their families, leaving deep marks on those hardest hit.”

Under the proposal, the standard rate would rise by 0.89 kroner per kilometre, from the current 2.28 kroner. The lower rate for distances over 120 kilometres would increase by 0.45 kroner, while commuters in 25 outer municipalities would see a 0.98 kroner rise. The government also plans to raise the additional deduction for low-income earners.

Projected tax savings include 7,090 kroner for a commuter from Slagelse to Høje-Taastrup, and 11,110 kroner for a low-income commuter on the same route. A low income is defined as below 341,500 kroner annually.

The travel deduction applies to those commuting more than 24 kilometres daily to and from work.