Swedish government plans tax cuts and healthcare reforms for 2025

The Swedish government, in collaboration with the Sweden Democrats, plans to reduce income and pension taxes next year, particularly benefiting low- and middle-income earners. The proposed tax cuts mean that individuals earning over 16,000 SEK monthly will see an average annual increase of 2,600 SEK, while retirees will average a tax reduction of 1,400 SEK. Moreover, there is a suggestion to exempt the first 150,000 SEK in ISK accounts from taxation, increasing to 300,000 SEK by 2026. Altogether, these fiscal measures are estimated to cost the state nearly 18 billion SEK.

Additionally, the government is set to enhance high-cost dental care protections for those aged 67 and older, effectively lowering dental visit costs for seniors. This reform is the most significant in over two decades, with a budget of 3.4 billion SEK starting January 2026, alongside the elimination of free dental care for those aged 19 to 23. Instead, this age group will receive double the dental care support.

In healthcare, the government intends to allocate 2 billion SEK in targeted grants and an extra 1 billion SEK to reduce waiting lists in 2025, aiming to increase healthcare capacity. Furthermore, the reduction obligation for fuel suppliers is to be raised from 6% to 10%, while simultaneously decreasing fuel taxes. However, this has drawn criticism from some environmental groups.

Starting July 1, 2025, the government will scrap the air travel tax, which could lower ticket prices and is expected to fuel more flight activity and emissions, although officials maintain that overall budgetary measures will still reduce climate impact. Finally, a proposed 1 billion SEK in this autumn’s budget will support land-based wind energy initiatives and nuclear projects, with additional funding allocated to related research and development efforts.