Payroll taxes in
Sweden.

SALARY PAYMENT IN Swedish Krona (SEK, kr)

CONTRACT LANGUAGES Swedish / English

PAYROLL TAX 31.42%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
Get Started

The Horizons PEO solution allows you to hire in Sweden, without setting up a costly subsidiary.

Horizons has the most fair price point for Sweden PEO on the market with zero hidden fees. Contact us for a cost breakdown

With extensive experience in the Swedish hiring market, Horizons can hire new employees in as little as 24 hours.

Horizons' HR management platform was built to easily manage Sweden & international teams, based on client feedback at each step of development.

Hire and pay talents
with Horizons in
180+ countries

Get started

Sweden

What is the average employer tax rate in Sweden?

The corporate tax in Sweden rate as of 2022 is 20.6%

What is the average employee tax rate in Sweden?

Income tax in Sweden is divided into a municipal tax and a national tax. The municipal rate varies depending on the municipality, but the average is 32.28%.

The national rate tax rate is progressive:

0 to 523,200 → 0%
523,200 and above → 20% (of the amount in this bracket)

A special tax rate of 25% exists for employees who are non-residents in Sweden (residing in Sweden for fewer than six months per year). This is known as SINK.

Employer contributions in Sweden

Employer social security contributions in Sweden are 31.42% of employee salary.

Employee contributions in Sweden

Employees must pay 7% of their income for the state pension. However, this is usually completely offset by a corresponding tax reduction.

Hiring in Sweden, Made Easy

Your business can easily hire employees in Sweden without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 185 countries worldwide. All you need to do is focus on your business.

FAQs

What is the tax bureau of Sweden called?

The tax bureau of Sweden is called the Skatteverket, or Swedish Tax Agency.

Is there an employer payroll tax contribution in Sweden?

While there is no payroll tax contribution in Sweden (i.e. there is no tax on an employee’s payroll like you would seee in the United States), there are the following taxes that employers must pay:

Employer social security contributions: 31.42% of employee salary
Corporate tax rate of 20.6%

How does the payroll tax system of Sweden work?

For employees, the national payroll tax system is progressive:

0 to SEK 523,200 → 0%
SEK 523,200 and above → 20% (of the amount in this bracket)

Employees must also pay municipal taxes; this amount will vary depending on exactly where the employee is located, but the average municipal rate is 32.28%.

Employees also contribute 7% of their income for the state pension.

There is also a special flat tax rate of 25% for employees who are non-residents of Sweden who have been located in Sweden for less than 6 months, called the SINK. Qualifying employees are able to apply (or their employers may apply on their behalf). If you hire or plan to hire foreign-nationals to work in Sweden, let us know and we can assess whether they are eligible to apply for SINK.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)