Salaries and Income Tax in Sweden: Average Pay, Minimum Wage and Tax Rates

Salaries and Income Tax in Sweden - Leinonen Sweden

Sweden is known for high wages, high taxes and strong trade unions. For foreigners and employers, three questions come up again and again: what do people earn, is there a minimum wage, and how much tax is taken from a salary? This guide answers them with current figures for 2026 and what to expect in 2027.

What Is the Average Salary in Sweden?

According to Statistics Sweden (SCB), the average monthly salary across all sectors was SEK 42,900 in 2025. The median salary was SEK 38,300. The median is the middle value, so half of all employees earn less and half earn more. It is usually the better guide to what a typical employee earns, because a few very high salaries raise the average.

Median monthly salary, 2025SEK
Women36,800
Men39,900
All employees38,300

Pay varies by sector. Privately employed white-collar men have the highest median (SEK 51,700), and blue-collar women in the private sector the lowest (SEK 30,800). You can find the full tables on the SCB website.

Is There a Minimum Salary in Sweden?

No. Sweden has no statutory minimum wage. Instead, minimum pay is set in collective agreements between employers and trade unions, sector by sector. Around 88% of employees were covered by such an agreement in 2025, according to the Swedish Mediation Office. This means the Sweden minimum wage depends on your industry, your role and your experience. If your company is bound by an agreement, you must follow it. If it is not, there is no legal requirement to follow it, but it is recommended to offer pay and terms in line with the agreements in your sector.

Salary Requirements for Work Permits

Fixed salary requirements apply to foreign workers from outside the EU. Under the rules in force from 1 June 2026, a work permit requires a salary of at least 90% of the median salary. For applications received from 16 June 2026, that is SEK 34,470 per month, based on the median salary of SEK 38,300. Some occupations and groups need only 75%, currently SEK 28,725. Transitional rules also apply: anyone who received their current permit before 1 June 2026 is tested at 80% of the median salary instead of 90%. The salary must also match the relevant collective agreement or sector practice. See the Swedish Migration Agency for the current figures.

How Are Income Taxes in Sweden Calculated?

Employees who live in Sweden pay two levels of income tax on their earnings:

  • Municipal tax: this is paid on all taxable earned income and averages 32.38% in 2026. The exact rate depends on where you live.
  • State tax: an extra 20% is paid on the part of annual income above about SEK 660,400 (around SEK 55,000 per month) for people under 66.

Employees also pay a general pension contribution of 7% (on income up to SEK 47,100 per year) and a public service fee, which finances Swedish public radio and television. The pension contribution is normally offset by a tax reduction of the same amount, so in practice the extra 7% is usually not paid.

Most employees therefore pay municipal tax plus these two contributions, and state tax only on higher incomes. The earned income tax credit (jobbskatteavdrag) then lowers the tax for people who work. For a person on the median salary, it is worth about SEK 4,300 per month. Your employer deducts the tax from each salary payment and pays it to the Swedish Tax Agency.

What About Foreigners Who Work Only Briefly in Sweden?

People who live abroad and work in Sweden for less than six months can apply for SINK, a special income tax for non-residents. The rate is 22.5% for income received from 1 January 2026, with a further cut to 20% from 1 January 2027. Read more on Skatteverket’s SINK page. Foreign specialists who move to Sweden for longer may apply for expert tax relief, but they do not qualify automatically. Each application is decided by the Taxation of Research Workers Board (Forskarskattenämnden). We explain the relief in our article on tax deductions in Sweden.

What Changes in 2027?

The picture for 2027 is still partly open. Sweden held a general election in September 2026, and at the end of September a new government had not yet been formed. The 2027 budget must be submitted to the Riksdag by 15 November, even if a caretaker government presents it. Some changes are already decided, while others are only proposals. Here is where things stand:

  • Decided: the age limit for the increased basic deduction (förhöjt grundavdrag) rises from 66 to 67 from 1 January 2027. This is a tax benefit for older people, because it reduces their taxable income. See Skatteverket’s page on the basic deduction.
  • Decided: SINK will fall to 20% from 1 January 2027.
  • Proposed: the Government has sent a proposal for consultation to strengthen the earned income tax credit for working seniors from 1 January 2027, with the same higher age limit of 67. Whether it is adopted depends on the next government and the final budget.
  • State tax thresholds and the earned income tax credit are normally adjusted each year, so the SEK 660,400 threshold above may change.
  • The work permit salary requirement is linked to the SCB median salary, so it follows the median figures.

You can follow the proposals on the Swedish Government’s website. We recommend checking the final figures in December, once the Riksdag has decided.

Set Up Salaries and Tax in Sweden With Leinonen

Setting pay, following collective agreements and handling tax correctly can be difficult for companies entering the Swedish market. Leinonen Sweden’s payroll and tax specialists can help you hire, pay, and report with confidence. Contact Leinonen Sweden to discuss your situation.

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