The government is presenting several proposals in the upcoming budget that affect household finances. Many have had a tough time in recent years when inflation has drained their wallets.
This will make things easier for Swedish households, says Finance Minister Elisabeth Svantesson (M) at a press conference.
But she also believes that the tax cuts will contribute to getting the economy going.
Much of this will be consumed, she says.
Lower Taxes
Among other things, the finance minister wants to strengthen the job tax deduction for employees and lower taxes for pensioners. The two tax cuts will cost the state treasury 13.5 billion kronor next year.
Everyone earning over 16,000 kronor will benefit from the proposal. At a monthly salary of 40,000 kronor, the effect levels out.
An average employee will see a reduced tax burden of 2,600 kronor per year, says Oscar Sjöstedt, economic policy spokesperson for the Sweden Democrats.
According to the government, the tax cut is aimed at low- and middle-income earners. However, looking at the overall effect of the previously introduced job tax deduction being indexed and the limit for paying state tax being raised, those with high incomes will receive the largest tax cut next year, in kronor terms.
Looking at the government's tables, individuals earning around 60,000 kronor per month and upwards will receive a tax cut of around 10,000 kronor per year next year.
To prevent pensioners from having to pay higher taxes than employees, the basic deduction for pensioners is being increased. This means that a median pensioner will receive a tax cut of 1,400 kronor per year.
Cheaper to Save
A third proposal in the upcoming budget is a tax-free basic level for savings in investment savings accounts (ISK) and in capital insurance. Next year, savings up to 150,000 kronor will be tax-free, and in 2026, the level will be raised to 300,000 kronor.
For an average ISK saver, the proposal means 750 kronor less in taxes next year.
The proposal for lower taxes on savings will cost the state 4.4 billion kronor in 2025 and 7 billion kronor per year thereafter.
The government is also proposing an extended temporary additional allowance for families with housing benefits until June 30, 2025.
The budget proposal will be presented in its entirety on September 19 and has been negotiated between the government parties and the Sweden Democrats.
