At the turn of the year, several new laws came into force in Sweden. Laws that affect everything from taxes and the environment to legal certainty and digital accessibility. New earned income tax credit, more expensive unsecured loans, anonymous witnesses allowed and lowered limit for free dental care are some examples.
Below is a selection of several important legislative changes in 2025.
Enhanced earned income tax credit and reduced tax for pensioners
The government has introduced an enhanced earned income tax credit that gives everyone with a monthly income of more than SEK 16,000 a tax cut of an average of SEK 2,600 per year. At a monthly salary of SEK 40,000, the effect fades away.
In addition, the phasing out of the earned income tax credit will be removed, reducing the marginal tax rate from 55% to 52%. Pensioners will also benefit from lower taxes, with an average reduction of around SEK 1 400 per year.
Increased income pension
The income pension will be increased by 4%, which means that a pensioner earning SEK 18,000 a month will receive SEK 720 more from January 2025. For guarantee pensioners, this means an increase of 2.6%.
Tax-free basic rate for savings in investment savings accounts (ISK)
A tax-free basic rate will be introduced for savings in ISK and endowment insurance accounts. In 2025, savings up to SEK 150,000 will be tax-free, with a planned increase to SEK 300,000 in 2026.
Reduced tax on petrol and diesel
From 1 January 2025, the tax on petrol and diesel will be reduced compared to previously decided levels. Further reductions will take effect on 1 July 2025, and these tax rates will also apply in 2026.
Housing allowance extended
The temporary additional allowance linked to the housing allowance will be extended until June 2025, but at a level of 25% of the preliminary housing allowance.
Increased tax on electricity
From the beginning of the year, the tax on electricity will be increased – from SEK 0.428 per kilowatt hour to SEK 0.439 per kilowatt hour (almost SEK 0.55 per kilowatt hour including VAT).
Allowing anonymous witnesses
To strengthen witness protection and counter the culture of silence in criminal circles, it will now be possible to testify anonymously in certain cases. This applies to serious crimes with a minimum sentence of two years' imprisonment, both during preliminary investigations and in court.
Mandatory textile sorting
From January 1, 2025, it will be mandatory to sort textile waste separately from other waste. This includes clothes, curtains, bags and other textiles. Municipalities will be responsible for the collection and management of textile waste.
Abolition of aviation tax
The previous aviation tax will be abolished on July 1, 2025. This is expected to reduce domestic and intra-European ticket prices by around SEK 80, while travel outside Europe will be around SEK 325 cheaper.
Reduced age limit for free dental care
The age limit for free dental care will be lowered from the beginning of the year. Previously, dental care was free until the year you turned 23; now this only applies until the age of 19. People between the ages of 20 and 23 will instead receive a general dental care allowance of SEK 600 per year.
Requirement for charging points at larger parking lots
After the turn of the year, parking lots with 20 or more spaces must have at least one charging point for electric cars. The requirement applies to almost all parking lots with 20 or more spaces. The exception is certain non-profit organizations, residential buildings and buildings for national defense.
Increased ceiling for rehabilitation grants
The ceiling for rehabilitation grants to employers will be raised from SEK 10,000 to SEK 20,000 per employee per year. The aim is to enable employers to offer employees the necessary rehabilitation.
Strengthened rights for children
Other examples of new laws and regulations to be introduced in 2025 include higher salaries for police trainees, abolition of license requirements for opening hotels or guesthouses, requirements for employers to report maternity and paternity leave to the Swedish Tax Agency, and strengthened rights for children against violence and abuse.
