Sweden: Tax measures in 2026 budget bill includes labour tax reductions, lower VAT on food

The government presented the 2026 budget bill focusing on household relief, aiming to boost disposable income and welfare investment.

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December 5, 2025

The government in September 2025 presented the 2026 budget bill focusing on household relief, aiming to boost disposable income and welfare investment.

Proposed tax measures include:

  • Reduced income and payroll taxes
  • Tax-free work bonuses
  • Lowered nonresident tax rates
  • Temporary employer contribution relief for young workers

Additional measures involve permanent tax exemptions for workplace EV charging, expanded deductions, simplified forest taxation, and reduced energy and value added tax (VAT) rates.


For more information, contact a KPMG tax professional in Sweden:

Clara Fex Rytterborg | clara.fex.rytterborg@kpmg.se

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