Denmark Mortgage Interest Tax Deduction Calculator — Rentefradrag
Calculate your rentefradrag — the Danish tax deduction on boliglån interest. 25.1% deduction rate (2024). Free, instant, no signup.
Current loan principal
From your mortgage statement
How Danish Rentefradrag Works
Denmark's rentefradrag allows all taxpayers to deduct interest on all debt — including mortgages (realkreditlån) — at a rate of 25.1% in 2024. Unlike most countries, Denmark applies the deduction to all debt, not just home loans.
On a DKK 2,000,000 mortgage at 4%, annual interest is DKK 80,000. Tax saving: 80,000 × 25.1% = DKK 20,080/year (DKK 1,673/month).
Effective after-tax rate: 4% × (1 − 25.1%) = 2.996%.
Key Rules and Historical Context
The Danish rentefradrag has been declining for decades — from 73% in 1987 to 25.1% in 2024. Unlike the Netherlands (full deduction for primary residence) or Sweden (fixed rate), Denmark applies a single rate to all interest with no loan amount cap.
- Applies to all debt interest — mortgages, car loans, student debt, consumer loans
- No loan amount cap — all interest qualifies
- The deduction is from income after the AM-bidrag (8% labour market contribution)
- The rate is expected to continue declining toward 25% in coming years
How to Claim the Rentefradrag
SKAT automatically applies the rentefradrag using data from your bank and mortgage lender. You can verify and correct the amount in your årsopgørelse (annual tax statement) at skat.dk from March/April each year. Most Danes use MitID to log in via TastSelv.
Frequently Asked Questions
Is the rentefradrag the same as the Norwegian one?
Both are called rentefradrag and both apply to all debt, but the rates differ: Denmark 25.1%, Norway 22%. Norway's is slightly lower but has never been subject to the steady declining trend seen in Denmark.
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