Higher travel deduction takes effect for over one million commuters today

A higher travel deduction for commuters comes into force today, benefiting over one million Danes, according to a Tax Agency (Skattestyrelsen) announcement.

The increased deduction, known as the transport allowance, will on average put an extra 2,300 kroner annually into the pockets of commuters who travel more than 12 kilometres each way to work. For example, those commuting from Slagelse to Høje Taastrup can expect nearly 7,100 kroner in tax relief this year, the agency calculates.

To receive the benefit from their next payslip, commuters must update their preliminary income assessment (forskudsopgørelse) by 20 July. “It makes sense to use your deductions throughout the year. I therefore urge commuters to update their expected travel for 2026. That way, they benefit from their deduction—and the higher rate—month by month,” said Ulrick Junge, deputy director at the Tax Agency.

The new government introduced the increased deduction to help commuters facing rising petrol and diesel costs. The higher rate applies temporarily to all commuters, regardless of whether they drive an electric car, petrol car, take the train, bus, or cycle the 12-kilometre distance each way.

The standard rate rises by 0.89 kroner per kilometre up to 120 kilometres, while the rate for distances over 120 kilometres increases by 0.45 kroner. Commuters from the country’s outermost municipalities will see their rate rise by 0.98 kroner.