Cost of living & Taxes in Copenhagen

Hi,

Currently I am living in London. I have been offered a job in Copenhagen with an yearly package of around DKK 485,000 before tax. My wife will also be moving with me. Understanding the fact Denmark has a very high income tax rate and cost of living as well is very high in Copenhagen.  Would it be wise enough to accept this offer. Also if someone can help me understand how much tax I will be paying.

For cost of living try www.numbeo.com 
I suggest a Google search will find out the taxation rates. A quick search showed average personal tax rate at 55.8%.

The pay will always reflect education, experience, skills etc., so you can find many people who would be happy to be paid 485,000 kroner a year, but ..............

Most expats are offered more than that pay because expats normally have some qualifications within fields where the demand for workcraft is higher than the supply. It's much easier for a company to hire a Danish candidate than hiring an expat why I guess your qualifications should qualify for a higher pay.

Regarding the tax:
If we take that you settle in Gladsaxe municipality (Greater Copenhagen), you are married, your wife doesn't work, yearly income 485,000 kroner, the tax will totally amount to 159,833 kroner a year.

Housing is difficult to find, and it is a pricy affair. Do expect some commuting, too.

I don't know if this answer will make everything clear to you, but you'll be welcome to ask again, optionally as a pb.

/Nellie

Stumpy:
Taxation is a really complex issue. The taxation percent doesn't tell everything, and I am very glad to say that 55.8 percent isn't the average (if you are taxated thus, it'll only be the income which exceeds a certain amount, and you'll have a really good income). Further, we all profit from a personal deduction before taxation, and other income - positive as negative - will also influence the taxation.

Hi Anurag,

As Nellie has mentioned, taxation in Denmark is a complex issue. You may like to read this pdf document at this link to get basic understanding

http://skat.dk/skat.aspx?oid=80716&vid=212904&lang=us

It is good to know about some of the tax allowances and deductions - which has an overall positive impact on your net income.
1. Every individual is entitled to an annual non-taxable personal allowance of 46000 DKK (2018 figures). Unused personal allowance is transferable between spouses. What it means is that if your wife has no income in Denmark, your effective non-taxable allowance increases to 92000 DKK.

2. Tax deductions due to daily commute between home and work, if it exceeds 12 kms each way.

3. A-Kasse (Unemployment Insurance) and union membership subscription fees

4. Interest expenses (on mortgage and other debts)

Regards,
Jay