US Citizens Working in Denmark
See what you actually take home after US and Denmark taxes — whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Denmark:
- •Denmark has progressive income tax rates up to 55.8%
- •FEIE can exclude up to ~$126,500 from US taxation if you meet the physical presence test
- •Very high tax rates but comprehensive social benefits
- •US-Denmark tax treaty helps prevent double taxation
Who taxes you?
As a US citizen working in Denmark, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to approximately $126,500 of foreign earned income if you meet the 330-day physical presence test. Denmark taxes residents on Danish-sourced income with progressive rates up to 55.8%, one of the highest in the world. While tax rates are very high, Denmark provides comprehensive social benefits. The US-Denmark tax treaty provides foreign tax credits to prevent double taxation.
Common pitfalls
- Danish tax rates are among the highest in the world, with top marginal rate of 55.8%
- Not meeting the 330-day physical presence test disqualifies you from FEIE
- State tax obligations may persist if you maintain US state residency
- Cost of living in Denmark is very high
Coverage level
Partial coverage with general tax guidance. Calculations are approximate.
Frequently asked questions
Yes. US citizens must file US tax returns regardless of where they live. However, you may not owe US taxes if your income is below the FEIE threshold and you meet the physical presence test.
The FEIE allows you to exclude up to approximately $126,500 (indexed annually) of foreign earned income from US taxation if you meet either the bona fide residence test or the 330-day physical presence test.
Denmark has one of the highest tax rates in the world, with combined rates up to 55.8%. The system includes bottom tax (bundskat), municipal tax, state tax, and top tax. You can claim foreign tax credits on your US return to offset taxes paid to Denmark.
Denmark has among the highest tax rates in the world but provides comprehensive social benefits including universal healthcare, education, and social security. The high tax rates fund these services and maintain one of the world's most extensive social safety nets.
Generally no. The US-Denmark tax treaty and foreign tax credits help prevent double taxation. You'll typically pay the higher of the two tax rates, not both.
Official resources
Primary sources:
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