Taxation of social benefits
Försäkringskassan distributes social benefits, some of which are taxable while others are tax-free. All social insurance payments are subject to preliminary tax deductions.
Deductions made prior to payment
Försäkringskassan deducts tax each time a payment is issued. The state tax brackets (tax rates) determine what deductions are made to social insurance payments. In general tax is withdrawn:
- according to decisions from the Tax Agency,
- with regards to a tax table or
- by 30 percent.
If the amount is less than SEK 100, no tax deduction is usually made.
There are two forms of preliminary tax, which can change during the income year (tax year) if the Tax Agency re-calculates the final tax.
Preliminary tax (skatteverket.se) External link, opens in new window.
As a rule, entrepreneurs who run business as sole traders are approved for F‑tax. If you are a sole trader and also receive income from employment, you need to be registered for both F-tax and A-tax, which is known as FA-tax status.
Employees and senior citizens are liable for A-tax.
If your main source income is from Försäkringskassan, tax deductions are made in accordance with the state tax table. In other cases, social insurance payments are regarded as additional income and therefore subject to 30 percent tax.
Avoid tax debts
Since tax deductions are preliminary, if too little tax is deducted during the year, you may incur a tax debt. This can be the case if you receive income from several different sources. Therefore, it is important to regularly review tax deductions on each income source.
Notify Försäkringskassan if the tax rate needs to be adjusted. If your income seems to be higher or lower than expected, you also need to re-submit a preliminary income tax return to the Tax Agency. Subsequently, Försäkringskassan can adjust benefit payments according to the up to date changes.
Correct your preliminary tax (skatteverket.se) External link, opens in new window.
Tax-free benefits
A number of benefits issued by Försäkringskassan are tax-free.
Declaration of income – annual tax return forms
The payments we issue are also reported on a monthly basis to the Swedish Tax Agency (Skatteverket). We declare how much money you have received each month including how much tax has been deducted.
However, we do not send personal verifications. Therefore, we recommend you save every payment notice until you have to file your tax return so that you can check that all the information in is accurate.
If you receive the same amount of compensation each month, you will get an annual statement. The total amount that is issued to you is then prefilled on your tax return form.
Special income tax for people residing abroad (SINK)
Expatriates residing in the EU are taxed a flat rate of 25 percent.
Apply for a special income tax as a non-resident through the Tax Agency.
Non-residents that are not eligible for SINK-tax are subject to preliminary tax.
Relaterade länkar
Learn more about Försäkringskassan
Taxation in Sweden
Find more about declaring and paying taxes as an individual, an employee or a business owner.