Denmark B-Income Guide (B-Indkomst, Freelance, and Self-Employment Tax)

What Is B-Income

B-income refers to income earned where no tax is withheld at source. Unlike A-income (salary, hourly wages), where your employer calculates and deducts tax before paying you, B-income arrives in your bank account gross — meaning you are responsible for reporting and paying the tax yourself. This can catch many freelancers and gig workers off guard at tax time.

Common examples of B-income include:

• — Freelancing fees: Web development, consulting, writing, design, photography, translation, and other professional services paid by invoice
• — Gig work: Deliveries (Wolt, Just Eat), ride-sharing (no Uber in Denmark but similar platforms), task-based platforms
• — Private daycare: Dagpleje payments from the municipality or parents — reported as B-income by the provider
• — Domestic help: Cleaning, gardening, handyman services — paid privately without employer tax withholding
• — Association remuneration: Honorariums for board members, coaches, instructors in sports clubs and non-profit associations
• — Commission: Sales commissions not paid through an employer payroll system
• — Royalties: Author royalties, music royalties, patent licensing fees

B-income is distinct from self-employed business income (virksomhedsindkomst). If your activity is substantial, organised, profit-oriented, and involves certain turnover thresholds, SKAT may classify it as a business rather than B-income. See the section on freelancing vs business below for the differentiation.

B-Income Fields on Forskudsopgørelsen

When you estimate your B-income on the forskudsopgørelse, you use specific fields depending on the type of B-income. Getting these right is essential for correct withholding:

• — Field 210 (B-income, fees and domestic help): This field covers most freelance fees, honorariums, and payments for domestic help. If you invoice clients for services and no tax is withheld, report the expected gross amount here.
• — Field 207 (Other B-income): Used for B-income that does not fit into field 210. Examples include certain types of commission, royalties, and association remuneration. If in doubt, check SKAT’s guidance or use field 210.
• — Field 221 (Business profit): This is for self-employed business income (virksomhedsindkomst), not casual B-income. If you operate a registered business (enkeltmandsvirksomhed), report your expected net profit here.
• — Field 15 (B-income total): This field aggregates B-income from fields 207, 210, and related subfields. It appears on your tax card and determines the withholding rate applied.

When you enter B-income in these fields, SKAT automatically calculates your B-tax rate. The rate is typically your marginal tax rate plus AM-bidrag (8% in 2026, with certain exceptions for under-18s). You will see the calculated B-tax reflected in your monthly withholding or as a separate B-tax payment schedule.

If your B-income is irregular or one-off, you can choose not to add it to the forskudsopgørelse. Instead, you can pay the B-tax as a lump sum when you receive the income. This avoids over-withholding in months when you have no B-income.

Paying B-Tax

B-tax is the tax you pay on B-income. There are two main methods for paying it, depending on whether your B-income is regular or irregular:

Method 1: Fixed income — include in forskudsopgørelse

• — If you have a regular monthly freelancing income, add the expected amount to field 210 (or 207) on your forskudsopgørelse
• — Your withholding rate (trækprocent) will increase to account for the additional tax and AM-bidrag
• — The tax is collected through your monthly salary withholding — you do not need to make separate payments
• — This method works well for stable, predictable B-income

Method 2: Lump sum — pay via TastSelv when income is received

• — For irregular or one-off B-income, do not add it to the forskudsopgørelse
• — Log in to skat.dk with MitID and use the B-tax payment feature in TastSelv
• — Calculate the tax owed: 8% AM-bidrag on the gross amount, plus income tax at your marginal rate (typically 38-52% depending on your total income)
• — Pay the calculated amount immediately or by the monthly deadline (typically the 10th of the following month)
• — This method avoids distorting your monthly withholding and is better for variable income

Example: You receive a freelancing payment of 50,000 DKK. AM-bidrag at 8% = 4,000 DKK. The remaining 46,000 DKK is subject to income tax at, say, 38% = 17,480 DKK. Total B-tax due = 21,480 DKK. You pay this via TastSelv.

Labour Market Contribution (AM-Bidrag)

The arbejdsmarkedsbidrag (AM-bidrag or labour market contribution) is an 8% tax applied to most earned income, including B-income. However, there are important nuances for B-income earners:

• — 8% rate on B-income: B-income is subject to AM-bidrag at the standard rate of 8% of the gross amount. This applies to most freelancers and gig workers.
• — 2026 reform — no AM-bidrag until year you turn 18: As of 2026, individuals under the age of 18 are exempt from AM-bidrag on B-income. The exemption applies from the year you turn 18 (meaning if you turn 18 in December 2026, you are exempt for all of 2026). This is a recent change that benefits younger freelancers.
• — AM-bidrag and A-income: If you also have A-income, the AM-bidrag on B-income is calculated separately from your employer-paid AM-bidrag. The total AM-bidrag across both income types may affect your overall tax bracket.
• — No deduction for AM-bidrag: The 8% AM-bidrag is not deductible from your taxable income. It is a separate contribution calculated on the gross B-income before other deductions.

The AM-bidrag is collected automatically when you pay B-tax through your forskudsopgørelse or when you make a lump-sum B-tax payment. When calculating your B-tax, always remember to include the 8% AM-bidrag first, then apply your income tax rate to the reduced amount.

B-Tax Instalments — Payment Methods

If your B-tax is not collected through increased monthly withholding (because you used the lump-sum method), you can pay by instalments or in full:

• — 10 monthly instalments: If you register your expected B-income on the forskudsopgørelse, SKAT divides the B-tax into 10 monthly payments (typically January-October). These are collected automatically.
• — Betalingsservice direct debit: You can set up automatic payment of B-tax through Betalingsservice (the Danish direct debit system). This ensures you never miss a payment.
• — Dankort/MobilePay: One-off payments can be made via Dankort or MobilePay through the TastSelv payment portal. This is useful for lump-sum payments on irregular income.
• — Giro transfer forms: SKAT can send you payment slips (girokort) for B-tax instalments. You pay these at your bank or through online banking. This method is less common in 2026 as digital payments are preferred.
• — Payment from abroad with IBAN: If you are a non-resident with B-income, you can pay B-tax using international bank transfer. SKAT’s IBAN is available on their website. Include your CPR number as the reference.

Missed B-tax payments accrue interest (restskatrente) at approximately 3.5% annually. If you consistently miss payments, SKAT may increase your withholding rate or require monthly reporting.

Freelancing vs Business — When Does B-Income Become Self-Employment

There is a grey area between B-income and self-employed business income (virksomhedsindkomst). Understanding the distinction is important because they are taxed differently:

• — B-income: Casual, occasional, or supplementary income. No organised business structure. Lower turnover. No VAT obligations. Taxed through B-tax with AM-bidrag.
• — Self-employed business: Organised, continuous, profit-oriented activity. May require VAT registration. Business income is reported in field 221, with deductions available for business expenses. Higher reporting standards.

Thresholds and indicators:

• — SKAT uses a turnover threshold — generally, if your B-income exceeds approximately 50,000 DKK in a year, SKAT may assess whether you should be classified as self-employed.
• — VAT registration: If your turnover exceeds 50,000 DKK in a 12-month period, you must register for VAT (moms). This pushes you into the self-employed category.
• — Structure: Do you have a CVR number (business registration)? Do you have a separate business bank account? Do you invoice formally? These factors point toward self-employment.
• — Deductions: Self-employed individuals can deduct business expenses (equipment, software, home office, travel) directly from business income. B-income earners cannot — they claim general employment deductions through field 29-31.
• — SKAT assessment: If you are unsure, you can request a bindende svar from SKAT to confirm your classification. This gives legal certainty about which rules apply.

If your freelancing activity grows, consider registering as a enkeltmandsvirksomhed (sole proprietorship) or establishing an ApS (limited liability company). An ApS offers liability protection and different tax treatment, but also higher administrative costs. For more on how B-income interacts with withholding, see our tax card guide →.

FAQs

What is the difference between A-income and B-income in Denmark?

A-income is salary from an employer where tax is withheld at source automatically via your tax card. The employer pays the tax directly to SKAT. B-income is income you earn without tax withholding — freelancing, gig work, honorariums, private sales, domestic help. With B-income, you are responsible for calculating and paying the tax yourself through B-tax via TastSelv. Both types are subject to AM-bidrag, but the payment method differs.

How do I report B-income to SKAT?

You report expected B-income on your forskudsopgørelse using field 210 (for fees and domestic help) or field 207 (for other B-income). For one-off or irregular B-income, you can skip the forskudsopgørelse and pay the B-tax as a lump sum through TastSelv when you receive the payment. At year-end, the actual B-income is pre-filled on your årsopgørelse based on third-party reports (usually from the payer). Always verify that the pre-filled amount is correct.

Do I pay AM-bidrag on B-income?

Yes. B-income is subject to the 8% labour market contribution (AM-bidrag) in 2026. This applies to most B-income earners, with an important exception: as of 2026, individuals under the age of 18 do not pay AM-bidrag on B-income (the exemption applies from the year you turn 18). The AM-bidrag is calculated on the gross B-income amount before other deductions and income tax.

What happens if I do not pay B-tax on my freelance income?

If you do not pay B-tax on your B-income, you will face restskat when the årsopgørelse is finalised in March of the following year. SKAT will charge restskatrente (penalty interest at ~3.5%) on the unpaid amount. If the underpayment is large or repeated, SKAT may increase your withholding rate, impose monthly reporting requirements, or conduct an audit. In cases of intentional non-payment, penalties can be significant.

When does B-income become a self-employed business?

SKAT looks at several factors: turnover (generally above ~50,000 DKK/year), regularity of the activity, profit motive, organisation (CVR number, business bank account, formal invoicing), and whether you have VAT obligations. If your activity is continuous and organised, you should register as a enkeltmandsvirksomhed or form an ApS. The distinction matters because businesses can deduct operating expenses directly, while B-income earners use standard deduction fields.