Starting in 2026, several new laws will impact household finances in Sweden. Reduced VAT on food and dance events, a strengthened job tax deduction, and changes to dental care and mortgages are among the examples. These rules aim to ease economic burdens for many.
Sweden's government has approved a series of changes effective in 2026 that will affect the economy in various areas. On April 1, food VAT will drop from 12 to 6 percent, lasting until December 31, 2027. The job tax deduction will be strengthened from January 1, providing a tax relief of about 400 kronor per month on an average salary.
For individuals turning 67 in 2026 and those older, dental care will become more affordable after the new year. The state will cover 90 percent of costs for procedures like fillings and root canals through a new dental care subsidy. Pensioners over 66 will receive an increased basic deduction, reducing taxes by around 150 kronor monthly for an average pension.
Tax-free savings limits on ISK and capital insurance will rise from 150,000 to 300,000 kronor per person. Interest deductions for unsecured loans, or blancolån, will be eliminated, affecting 5.8 million people per Skatteverket. The cost ceiling for housing allowances will increase for families with high living expenses.
The strict amortization requirement for mortgages will be removed on April 1, and the mortgage cap will rise from 85 to 90 percent, though parliament has not yet made a final decision. VAT on dance event tickets will fall from 25 to 6 percent on July 1. In the justice system, the minimum prison sentence will increase to one month, and conditional release will occur earliest after three-quarters of the sentence for terms of at least six years.
The repatriation grant for protected immigrants will rise to 350,000 kronor per adult. Uranium mining will again be permitted, but municipalities retain veto power.
