In 2025, Degerfors will emerge as the municipality with the highest total municipal tax rate in the country, while Österåker will retain its position as the municipality with the lowest tax rate for the seventh consecutive year. This shift in tax rates reflects a broader trend in municipal finance and local governance that is reshaping the fiscal landscape of Sweden.
The most significant increases in municipal taxes are seen in Övertorneå, where the tax rate is set to rise by 75 öre per hundred kronor, and in Laxå, where the tax rate will increase by 52 öre. Vilhelmina and Stockholm are also raising their tax rates by 25 öre and 24 öre, respectively. These increases are driven by a variety of factors, including rising costs of public services, infrastructure investments, and demographic changes.
Regionally, Värmland is experiencing the highest increase in municipal taxes, with a 60 öre hike, followed by Dalarna with a 35 öre increase. These regional variations in tax rates reflect the unique economic and social challenges facing different parts of Sweden and underscore the importance of local governance in addressing these issues.
However, not all municipalities are raising their tax rates. In fact, some are even lowering them. “Two municipalities in Västra Götaland are reducing their tax rates the most, with Vara lowering by 60 öre and Ale by 50 öre. Lidingö is also reducing its tax rate by 50 öre,” explains Peter Gärdqvist, a statistician at SCB. These reductions may be driven by efforts to attract businesses and residents, stimulate economic growth, or improve the overall quality of life in these communities.
Overall, the average total municipal tax rate for 2025 is projected to be 32.41 percent. The difference between the highest and lowest tax rates is 6 kronor and 32 öre per hundred kronor, highlighting the significant disparities in tax burdens across different municipalities in Sweden.
While Österåker continues to have the lowest total municipal tax rate in Sweden, with a rate of 28.98 percent, Degerfors tops the list with a total tax rate of 35.30 percent – significantly higher than the national average. This disparity underscores the complex interplay of factors shaping local tax policies and the challenges faced by municipalities in balancing their budgets and providing essential services to residents.
As we look ahead to 2025, it is clear that municipal finance will continue to be a critical issue for communities across Sweden. The shifting tax landscape, with some municipalities raising rates to meet growing demands for services and infrastructure, while others lower rates to spur economic development and attract investment, underscores the need for innovative solutions and collaborative approaches to address the diverse needs of citizens and ensure sustainable growth and development for all.