PAL tax, ASK and share income: the tax on returns
The same return is taxed very differently depending on where the money sits: 15.3% in a pension account, 17% on the aktiesparekonto, 27 or 42% in a free portfolio. The differences decide both where savings grow best and what they are worth when spent.
PAL tax: the pension accounts’ 15.3%
Returns inside the ratepension, livrente and aldersopsparing are taxed with the PAL tax of 15.3% — on an accrual (inventory) basis, i.e. on the year’s return whether or not anything was sold. It is the lowest rate of them all, and it is flat: no ladders, no thresholds.
The aktiesparekonto: 17% on accrual
The aktiesparekonto is taxed at 17% of the year’s return, also on accrual, and has a cap on total contributions. Up to the cap it is the cheapest place to hold shares outside the pension system — and the money can be withdrawn freely, which makes it well suited as a bridge in the years before the pensions can pay out.
Share income: 27% up to the threshold, 42% above
Gains in free portfolios are taxed as share income when realised: 27% up to DKK 79,400 a year and 42% above (2026). The threshold is per person — and it resets every year, so a drawdown that spreads sales across years under the threshold can keep the entire return at 27%.
Capital income: interest and bonds
Interest and bond returns in free funds are capital income with rules of their own and an extra DKK 55,000 allowance (2026) before the 42% top rate bites. In practice most people land around 37–42% — dearer than share income’s low bracket.
The same return, four tax environments
| Environment | Rate | Principle |
|---|---|---|
| Pension account (PAL) | 15,3 % | Accrual (year’s return) |
| Aktiesparekonto | 17 % | Accrual (year’s return) |
| Free portfolio (shares) | 27% / 42% above DKK 79,400 | Realisation (on sale) |
| Free funds (interest/bonds) | approx. 37% / 42% above DKK 55,000 | Year’s income |
What does it mean for where savings should sit?
The rates favour pensions and the ASK — but the picture isn’t complete without the payout side: the pension account’s low PAL tax is paid for with income tax and the taper when the money comes out, while the free portfolio’s higher return tax buys flexibility and the yearly 27% share income threshold in the drawdown. The weighting depends on your ages, amounts and bridge needs — and connects to the payout order.
How NestEgg calculates it
NestEgg calculates each environment separately, month by month: PAL and ASK continuously on returns, share income on sales against the year’s threshold, capital income with its allowance — and pension payouts through the income ladders. The amount the plan shows is after all tax.
See the answer for your own household
Import your PensionsInfo reports and NestEgg calculates when you can stop and what you can spend per month — Danish tax included, all the way.