Here we explain the concept of income tax, how it is calculated and what you as a self-employed person should be aware of.
Income tax is the tax you pay on income, most notably from work. Everyone in Sweden must pay income tax, and most of it goes to the municipality and region in which you are registered as a resident, so-called municipal tax. If you work as a self-employed person through Shoutly, you also pay council tax in the same way as ordinary employees.
The tax rate is proportional, meaning that everyone in the same municipality pays a certain percentage of their income in taxes. However, the exact percentage may vary depending on where you live. Generally, the municipal tax is around 30 percent, but you can easily check what applies to you via the Swedish Tax Agency's website.
For those who earn above a certain limit, the so-called cut-off point, state income tax also applies. This means that if your annual income, after basic deductions, exceeds this cut-off point, you will have to pay additional taxes to the state.
The breaking point can vary from year to year. For 2024, the cut-off point was SEK 598,500. If you earn more than that amount after deductions, you must pay 20 percent state income tax on the portion of your income that exceeds the cut-off point.
Anyone with an annual income above the cut-off point needs to pay state income tax. For those who are under 65, in 2024, you can have a total annual income of up to SEK 615,300 (598,500 + 16,800) before state tax is added. For those who are older, the limit is slightly higher, 697,300 SEK for the year 2024. Only the portion of income that exceeds the cut-off point is taxed with state income tax.
The IRS has tools on its website that can help you figure out if you're subject to state tax, based on your income and age.
Figuring out one's income tax can be a bit complicated, but The Tax Agency has a simple service where you can fill in information about your income, age and place of residence to get an accurate calculation. This way you can quickly get an overview of how much tax you are going to pay, both municipal and state.
As a self-employed employee of Shoutly, the same income tax rules apply as for other workers. Whether you are freelancers, consultant or have another type of assignment, you pay taxes on your earnings. We at Shoutly help you take care of tax receipts, including income tax and social security contributions, every time you invoice through us. This way, you can feel confident that everything will be handled correctly.
If you have questions or concerns about taxes or other financial matters, please feel free to contact us.
