Interest deduction (ränteavdrag)

Interest deduction: calculate the tax reduction on interest

Sweden’s interest deduction (a tax reduction for a capital deficit) means that part of your annual interest expenses can reduce your final tax. This typically includes interest on mortgages and other loans reported as private interest expenses.

With our interest deduction calculator you can:

• see how much you may get back in your tax return
• understand the split between 30% and 21%
• compare scenarios and allocation between two borrowers
• account for the phase-out of deductions on unsecured loans

How the interest deduction works (quick overview)

The tax reduction is calculated based on your capital deficit (underskott av kapital). A simplified rule of thumb (which the calculator uses when you enter interest expenses) is:

• 30% of interest expenses up to 100,000 SEK per person
• 21% on the part above 100,000 SEK per person

You’ll see this split in the results as “Deduction at 30%” and “Deduction at 21%”.

Important: In the tax return, the deficit is calculated after capital income (for example, interest income) has been offset against capital expenses. If you have interest income or other capital items, your actual deduction may be lower than what you get by looking at interest expenses alone.

Find the right numbers to enter

You can usually find your annual interest expenses in:

• your bank’s annual statement / tax information
• your pre-filled Swedish tax return (interest is often already reported)

If you have multiple loans, sum the interest by category:

• Secured: typically mortgages (sometimes also car loans) where the lender has collateral
• Unsecured: for example personal loans and credit (see year-specific rules below)

Unsecured loans: the year matters

The deduction rules for interest on unsecured loans have been tightened:

• 2025: only 50% of interest on unsecured loans is deductible
• 2026 and onwards: 0% (no deduction) for interest on unsecured loans

Choose the correct year in the calculator if you want to compare 2024/2025/2026 or plan ahead.

Split interest costs between two borrowers

If you are two borrowers, you can (in practice) allocate the interest expense between you. This can matter because the 100,000 SEK threshold applies per person.

Example:

• If one person reports the full 160,000 SEK, they get 30% on 100,000 SEK and 21% on 60,000 SEK.
• If you can split it as 80,000 SEK each, both stay under 100,000 SEK and get 30% on their entire share.

The calculator shows both the total and how much of the deduction belongs to you vs. your co-borrower.

How to interpret the results

In the results you’ll see, among other things:

• Total tax reduction: the amount that reduces your final tax
• Interest cost after deduction: what the interest “costs” after the tax reduction
• Effective deduction rate: the deduction as a percentage of total interest (may be lower if a large share is above 100,000 SEK or if unsecured interest is not deductible)

Common mistakes

• Wrong year: deductibility for unsecured interest depends on the year.
• Mixing up interest and principal: principal repayment (amortisation) is not deductible.
• Forgetting interest income: in the tax return it can reduce the capital deficit and therefore the tax reduction.
• Missing allocation optimisation: two people can often use the 30% level more effectively than one.

Adjustment (jämkning): get the effect during the year

If you want the effect month by month (lower withholding tax), you can apply for a Swedish tax adjustment (jämkning) so the interest deduction is reflected in your preliminary tax instead of only in the final tax return. The calculator helps you estimate the size, but the application itself is handled by Skatteverket.

Important to know

This is decision support. Your actual tax reduction depends on your real capital deficit in your tax return and may be affected by more items than interest (for example capital income). Always verify your tax return and the current rules from Skatteverket.