The Danish state pension and the income taper
The Danish folkepension has two parts: a base amount and a supplement. Almost everyone gets the base amount — but the supplement is tapered by your income beside the state pension, and for many households that taper is the hidden price of their pension payouts.
Base amount and supplement
The base amount is only tapered by high employment income — pension payouts don’t touch it. The supplement, however, is income-adjusted: it is tapered by virtually all income beside the state pension, and both the amount and the rate depend on whether you are single or married/cohabiting.
Rates and thresholds (2026)
| Single | Married/cohabiting | |
|---|---|---|
| Maximum supplement | DKK 8,729/month | DKK 4,467/month |
| Allowance before taper | DKK 95,800/year | DKK 198,800/year |
| Taper rate | 30,9 % | 16 % |
The mechanics: income beyond the allowance reduces the supplement by the taper rate, krone for krone, until the supplement is gone. A single person with DKK 150,000 a year in pension payouts beside the state pension loses (150,000 − 95,800) × 30.9% ≈ DKK 16,700 of the year’s supplement. For couples the threshold applies to the couple’s combined income.
What is offset — and what is not?
- Offset: running payouts from the ratepension and livrente, ATP and other taxable income beside the state pension.
- Not offset: payouts from the aldersopsparing — and wealth itself: money sitting in free portfolios doesn’t count until returns or sales become income.
What does it mean for the plan?
The taper acts as extra marginal tax on pension payouts in exactly the years you receive the supplement. It can therefore pay to place large instalments in the years before the state pension age and draw less on the offset sources afterwards — or the other way round, if the numbers are small enough to stay under the allowance. This ties directly into the payout order and the choice between ratepension and livrente.
How NestEgg calculates it
NestEgg calculates the supplement year by year from the plan’s actual payouts — with the correct allowance and rate for single or couple — so the taper is built into the monthly amount, not a surprise afterwards. The base amount comes from your PensionsInfo report as its own benefit. One simplification worth knowing: for couples the app counts only your own payouts, not the partner’s income, in the taper.
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.