The proposed tax measures include business tax credits and simplified forestry and shipping rules, temporary VAT cuts and fraud controls, changes to excise taxes on alcohol and tobacco, permanent tax-free EV workplace charging, and reduced energy and diesel taxes.
Sweden’s government published the 2026 Budget Bill on 22 September 2025, which will now be submitted to the parliament for deliberation and approval.
This follows the government plans to introduce significant tax reductions in the 2026 Budget, set to take effect on 1 January 2026.
The key proposed measures include changes to business and capital taxation, temporary reduction of VAT, energy and environmental taxes, amongst others.
Business and capital taxation
Companies will be able to claim tax credits for donations made to non-profit activities. Forest taxation rules will be simplified by removing the tax on interest from forestry accounts and allowing deductions for properties within the EEA. The tonnage tax system for shipping will also be improved, aligning it with EU state aid rules.
VAT and excise taxes
A temporary reduction of VAT on food will be introduced. VAT on entry to dance events will also be lowered. To strengthen compliance, new measures will be implemented to combat VAT fraud. Vehicle and commercial vehicle tax will be abolished for certain caravans. The alcohol tax will be reduced for beverages produced by small independent producers. Tobacco taxes will rise on products including cigarettes, cigars, cigarillos, smoking tobacco, and chewing tobacco.
Tax-free workplace EV charging
Workplace charging of electric vehicles will remain permanently exempt from taxation as a benefit in kind.
Energy and environmental taxes
From 2026, the energy tax on electricity will be lowered to 36 öre per kWh. The temporary reduction of the agricultural diesel tax will also be extended.
Individual income taxes
Taxes will be reduced on wages, pensions, and sickness or disability benefits through a higher earned income tax credit, an increased basic allowance, and an enhanced tax reduction for sickness and disability compensation. The special income tax for non-residents (SINK) will be lowered in stages, moving from 25% to 22.5% and eventually to 20%.
