US Citizens Working in Sweden
See what you actually take home after US and Sweden taxes — whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Sweden:
- •Sweden has progressive income tax rates up to 52.9%
- •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-Sweden tax treaty helps prevent double taxation
Who taxes you?
As a US citizen working in Sweden, 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. Sweden taxes residents on Swedish-sourced income with progressive rates up to 52.9%. While tax rates are very high, Sweden provides comprehensive social benefits including healthcare and education. The US-Sweden tax treaty provides foreign tax credits to prevent double taxation.
Common pitfalls
- Swedish tax rates are very high, with top marginal rate of 52.9%
- 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 Sweden is high, especially in major cities
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.
Sweden has a two-tier tax system: municipal tax (averaging around 32%) and state tax (20% on income above approximately SEK 598,000). Combined rates can reach up to 52.9%. You can claim foreign tax credits on your US return to offset taxes paid to Sweden.
Sweden has very high tax rates 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-Sweden 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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