Renting out a room or a home you live in
When you rent out a room or your entire home for part of the year, you have to pay tax (and possibly VAT) on your rental income. This applies to owner-occupied homes, rental homes and cooperative dwellings (andelsboliger).
You can choose between the following 2 types of deduction:
- Standard deduction
- Accounting deduction
Read more about the deductions here on this page and try our calculator below to calculate your taxable income when you use the standard deduction.
In 2023, 2024 and 2025 it was not a requirement that the platform reported your income to us or a non-Danish tax authority in order for you to apply the high standard deduction. For those years you merely needed to use a platform subject to reporting to be entitled to apply the high standard deduction - no matter if the platform reported the income or not.
If you're unsure of whether the platform is subject to reporting, you need to contact the platform. You can see what the platform has reported to us in E-tax (TastSelv) under Skatteoplysninger (Tax information).
Standard deduction
When you rent out a room or your entire home, you can choose between 2 standard deductions:
- DKK 35,100 in 2026 (DKK 33,500 in 2025).
- DKK 13,800 in 2026 (DKK 13,100 in 2025).
The size of the standard deduction depends on how long you rent out the room/home (short-term or long-term rental) and if you use an online platform that reports your income to us or to a non-Danish tax authority (only in case of short-term rental)
Short-term and long-term rental:
- Short-term rental: When you rent out your room/home less than 4 months.
- Long-term rental: When you rent out your room/home for 4 months or longer.
Conditions:
- The rental period must be consecutive weeks/months or each of your rentals to the same tenant.
- If you rent out your room/home 5 times during the year for a total of 4 months, these rentals are considered 5 short-term rentals as each period is less than 4 months.
- If you rent out your room/home to the same person/persons for 4 months or more it's considered long-term rental.
If you rent out your room/home for the full year, it may be considered commercial rental and then other tax rules may apply.
Read more in Danish about the rules on short-term and long-term rental in our legal guide.
Accounting deduction
when you chose to apply the accounting deduction, you can deduct documented expenses from your rental income. You can choose this deduction whether the rental period is short term (less than 4 months) or long term (4 months or more).
The calculation of the accounting deduction is based on if you:
- own the home
- have a cooperative dwelling
- rent the home.
Please note that if you decide to apply the accounting deduction, you can't switch to apply the standard deduction later on.
Guide: Calculate your taxable income
- Find your total rental income – including payment for water electricity, heat and internet access.
- Deduct your documented expenses (it could be rent, electricity and heat). You're now left with the amount you have to pay tax on.
- Report this amount in E-tax (TastSelv) (the exact box depends on whether you have an owner-occupied home, a cooperative dwelling or you rent your home - see below).
Please note
You can only deduct documented expenses. So, remember to keep the documentation on alle expenses.
If you own the home, the income is considered income from capital. So, enter the income minus expenses in your tax assessment notice (årsopgørelse) in box 37/field 218 in your preliminary income assessment (forskudsopgørelse).
Deductible expenses
- Electricity, water and heating (the part relevant for the rental)
- Maintnance and depreciation on equipment (excluding domestic appliances)
- Expenses for advertisement
- A proportionate part of the land tax, if you rent out at least 10% of the home.
Non-deductible expenses
You can't deduct expenses for maintenance of the actual property or ongoing operating costs such as rubbish collection, chimney sweeping, insurance.
Reduced property value tax
You don't pay property value tax on the part of the home you rent out. You get a reduced tax by reporting in your tax assessment notice how long you rent out your home and how much of your home you rent out.
Deduction for land tax
- You can deduct a proportionate part of the land tax if you rent out at least 10% of your home.
- If you rent out 15% of your home, you deduct 15% of the land tax for the rental period.
Example: If you own the home
Mads owns a home and rents out a room. He charges rent of DKK 18,000 and get an additional DKK 3,000 for electricity, water and heating:
- Total rental income: DKK 21,000
- Land tax deduction: DKK 6,000
- Deduction for electricity, water and heating: DKK 3,000
- Total deduction: DKK 9,000
- Taxable income: DKK 21,000 - DKK 9,000. = DKK 12.000
So, Mads reports DKK 12,000 in box 37 in his tax assessment notice (årsopgørelsen) and in field 218 in his preliminary income assessment (forskudsopgørelsen).
(Please note that the deduction can never exceed the rental income. And remember to report how much of your home you rent out and for how long.)
When you rent out a room/a home or have a cooperative home, the income is called 'income from capital' or 'personal income' depending on how long you rent out the room/home:
- Less than 4 months: Income from capital
- Period of 4 to under 12 months: You can choose between income from capital or personal income
- 12 months or more: Personal income
Report your income minus your expenses
- Income from capital: Tax assessment notice box 37/ Preliminary income assessment field 218
- Personal income: Tax assessment notice box 20/ Preliminary income assessment field 250
Deductible expenses
- Electricity, water, heating
- Expenses for maintenance and depreciation on equipment (exclusive of domestic appliances)
- Expenses related to the rental, such as advertisement
Please note
- You can't deduct expenses for maintenance of the actual property or regular operating costs such as rubbish removal, chimney sweeping and insurance.
- You can only deduct documented expenses. So, remember to keep your documentation on all expenses.
Example: When you rent out a home or have a cooperative home
Søren's monthly rent is DKK 5,000. On top of that he pays DKK 1,500 for electricity, water and heating per month. He rents out 10% of his home for 3 months:
- Rent (3 months x DKK 5.000 x 10%) = DKK 1,500
- Expenses for electricity, water and heating (3 months x DKK 1,500 x 10%) = DKK 450.
- Rental income DKK 4,500 + DKK 500 (rent + electricity/water/ heating) = DKK 5,000
- Total deduction for proportionate rent + electricity/water/heating (DKK 1,500+ DKK 450) = DKK 1,950
- Taxable income: DKK 5,000 - DKK 1,950 = DKK 3,050
Søren must report DKK 3,050 in box 37 on his tax assessment notice/field 218 in his preliminary income assessment. (Please note that the deduction can never exceed the rental income).
Standard deduction depends on how you rent out your room/home
- If you use an online platform that reports your income to us or to a non-Danish tax authority, you're entitled to a standard deduction of DKK 35,100 in 2026 (DKK 33,500 in 2025).
- If you don't use a platform (or via a platform that doesn't report your income to us or to a non-Danish tax authority), you're entitled to a standard deduction of DKK 13,800 in 2026 (DKK 13,100 in 2025).
Rules on the use of the standard deduction
- If you do rentals and some of them are via a platform and others are not, you have to apply the standard deduction on your rental income from the platform first.
- If your income via the platform is less than DKK 13,800 in 2026 (DKK 13,100 in 2025), you can deduct the rest of the standard deduction from your rental income stemming from not using a platform before you calculate your taxable income.
- For 2023, 2024 and 2025 you're entitled to the high standard deduction if you rented out your room/home via a platform that was obliged to report to us - regardless of whether the platform did report your income or not.
If you don't know if a platform is obliged to report your income to us or not, you can contact the relevant platform. You can see the information reported by the platform in your Tax information in E-tax (TastSelv).
You can't deduct other expenses
When you use the standard deduction, you're not entitled to deduct expenses for electricity, water and heating or your land tax (property tax) and you can't get a relief on your property value tax.
If you share the rent or own the home with others
Generally, there's only one standard deduction per home. When more people live in the same home, the standard deduction will be divided:
- If you own the home with one other person, you share the standard deduction based on owner share (50/50 for example).
- If you share a rental home with others, the standard deduction is divided according to your part of rent.
- If you have individual leases, you're entitled to the full standard deduction.
Guide: How to calculate your taxable income
- Find your total rental income - including payment for electricity, water, heating and internet access.
- Deduct your standard deduction - the deduction depends on whether you rent out your room/home via an online platform that report your income to us or a non-Danish tax authority or not or you share the home with others.
- Deduct 40% from the amount exceeding the standard deduction (40% reduction). What you have left is the amount you have to pay tax on.
- Enter the amount in E-tax (TastSelv) (box 37 in your tax assessment notice/field 218 in your preliminary income assessment).
Standard deduction for long-term rental
If you rent out your home to the same person for 4 months and more, it's considered long-term rental. The standard deduction is calculated based on:
- if you own the home, rent it or are a cooperative owner
- if you have lived in the home for all or part of the year
- if you own the home or share the rent with others.
You can't deduct other expenses
When you use the standard deduction, you're not entitled to deduct expenses for electricity, water and heating or your land tax (property tax) and you can't get a relief on your property value tax.
See examples below
Calculate your taxable income
- Find property value used for the calculation of the property value tax (in your tax assessment notice or at ois.dk)
- Calculate the standard deduction: 1 1/3% of the property value (minimum DKK 24,000)*
- Deduct the standard deduction from your rental income. What you have left is what you have to pay tax on.
- Report the amount in E-tax (TastSelv) (box 37 in your tax assessment notice/field 218 in your preliminary income assessment).
* The standard deduction for 2021, 2022 and 2023 is calculated as 1 1/3% of the property value 2020.
Example: If you own the home
Mette rents out a room in her all-year home for the entire year. Her property value is DKK 2,000,000:
- Standard deduction: 1 1/3% of DKK 2,000,000 = DKK 26,667
- Rental income including electricity, water and heating: DKK 50,000
- Taxable income: DKK 50,000 - DKK 26,667 = DKK 23,333
Mette reports DKK 23,333 in box 37 in her tax assessment notice.
(Standard deduction rate from 2024)
Calculate your taxable income
- Find your annual rent or your cooperative dwelling payment
- Calculate the standard deduction: 2/3 of your annual rent/Payment
- Deduct the standard deduction from your rental income. What you'r left with is the amount you have to pay tax on.
- Report the amount in E-tax (TastSelv) (box 20 in your tax assessment notice/Field 250 in your preliminary income assessment)
Example: Rental home/cooperative dwelling
Jesper lives in a cooperative dwelling and has an annual cooperative dwelling payment of DKK 60,000. He rents out a room for the entire year:
- Standard deduction: 2/3 of DKK 60,000 = DKK 40,000
- Rental income including electricity, water and heating: DKK 55,000
- Taxable income: DKK 55,000 - DKK 40,000 = DKK 15,000
Jesper reports DKK 15,000 in box 20 in his tax assessment notice.
(Standard deduction rate from 2024)
One standard deduction to be shared
When more people live in the same home, the standard deduction is generally divided:
- If you onw the home with one other person, you divide the standard deduction according to owner share (50/50 for example).
- If you share a rental home with others, the standard deduction is divided according to your share of the rent.
- If you have separate leases, you're entitled to the full standard deduction.
If you rent out a room/home for both short and long terms within a year, the standard deduction is divided proportionately between short-term and long-term rentals.
New legislation for online platforms
A new EU directive (DAC7) took effect on 1 January 2023 and it obliges online platform providers to report information about their users to the Tax Agency or a non-Danish tax authority.
The information is meant to enable the European tax authorities to identify the users of platforms and find out how much the earn on the platforms.
What does this mean to you?
If you rent your room/home out via an online platform (such as a website or an app), you may find that the business/agency that owns the platform will contact you to get your CPR number, your home address and other personal data.
What happens if the platform doesn't get my data?
If the platform doesn't get your data, it may stop payments to your account.
Do you need to pay VAT when your rent out rooms or your home? It all depends on what you rent out, how long you rent it out and if you use a non-Danish platform such as Airbnb for example.
For further legal information in Danish see our legal guide .