The Moderates want to introduce a stepwise state income tax to cut taxes for high earners, including specialist nurses and civil engineers. The proposal is presented at the party's congress in Västerås and is seen as a major reform of the tax system. It aims to boost work incentives but raises taxes on unemployment benefits.
At the Moderates' party congress in Västerås on October 24, 2025, a proposal was presented to reform the state income tax. Currently, those earning over 53,600 kronor per month pay 20 percent state tax on income above the threshold. The party wants to introduce a ladder where the tax phases in stepwise, providing a significant cut for many high earners.
Finance Markets Minister Niklas Wykman (M), behind the proposal, explains: "Now you hit this 20 percent wall. It makes many hesitate to step up for that managerial job or extra weekend shift if much of it disappears in tax." The reform targets broad occupational groups like civil engineers and specialist nurses, but the state tax remains at 20 percent for very high incomes.
The proposal is part of the Moderates' "job deduction," described as the biggest change to the tax system since the 1990s. MP Oliver Rosengren (M) emphasizes simplicity: "We have a complicated tax system. As a party, we should always stand by hard-working people, and that means bringing down the tax on work further."
At the same time, the model means higher tax for those on unemployment benefits (a-kassa), without basic or earned income deductions. Rosengren confirms: "It's true that the difference between working and not working will increase with this reform." Finance Minister Elisabeth Svantesson (M) underscores the party's overall goal: "Sweden still has high taxation on work." Rosengren himself will benefit from the cut, which he welcomes for all workers.
The party wants to continue lowering taxes for both high and low incomes, in line with previous job tax deductions.