Basic tax-free allowance (”grundavdrag”) is a deduction that the Swedish Tax Agency approves automatically when calculating your tax.
If you did not live in Sweden for the whole of the income year, you only get a basic tax-free allowance for the part of the year that you lived here.
But if 90 per cent or more of your income from employment (including pension) for the income year concerned is declared in Sweden, you have the right to a basic tax-free allowance for the whole of the year even though you only lived here for part of the year.
You must request this yourself in your income tax return under point 17 “Additional information” (“Övriga upplysningar”).
Retirement age increases from 65 to 66
Retirement ages for Swedish state pension benefits increased on 1 January 2023. The minimum age at which a guaranteed pension and income pension supplement can be paid, was changed from 65 to 66.
This new increased retirement age will also affect taxation. To qualify for a higher tax-free allowance during the income year 2023, you must have turned 66 before 1 January 2023. Therefore, if you were born in 1957 and are 65 (rather than 66) years old on 1 January 2023, you will not qualify for a higher tax-free allowance.