Tax on subletting — Complete guide
Income from subletting is taxed as capital income. Here we explain how the tax is calculated, what deductions you are entitled to, and the differences between the various housing types.
Basic rule: 30% capital tax
All rental income from private subletting is taxed as capital income at a rate of 30%. The tax is only paid on the portion of income that exceeds your deductions — that is, your taxable income.
Standard deduction: 40,000 SEK per tax year
Regardless of housing type, you are entitled to a standard deduction of 40,000 SEK per property per tax year. If you own the property jointly with someone else and you both report the rental income, the standard deduction is split between you.
The standard deduction is a fixed amount and requires no receipts or documentation. It is subtracted from gross income before the tax is calculated.
Different deduction rules per housing type
Rental and co-op apartments
In addition to the standard deduction, you may deduct your own costs for the property during the rental period. For rental apartments, this means your primary rent. For co-op apartments, this means the monthly fee you pay to the housing association.
Calculation example — Co-op apartment
Rental income: SEK 14,500/mo × 12 = SEK 174,000
Standard deduction: -40,000 SEK
Own costs (fee SEK 4,500 × 12): -SEK 54,000
Taxable income: SEK 80,000
Tax: SEK 80,000 × 30% = SEK 24,000
Houses and townhouses
Different rules apply when renting out a house. Instead of deducting your own costs, you are entitled to an extra deduction of 20% of the gross rental income. This deduction replaces the deduction for own costs — you cannot claim both deductions.
Calculation example — House
Rental income: SEK 22,667/mo × 12 = SEK 272,004
Standard deduction: -40,000 SEK
Extra house deduction (20%): -SEK 54,401
Taxable income: SEK 177,603
Tax: SEK 177,603 × 30% = SEK 53,281
Do these rules only apply to primary residences?
Yes, the 30% capital income tax rate, the 40,000 SEK standard deduction, and the 20% extra deduction for houses all apply exclusively to a privatbostad (private residence): a property that you use or have used as your own home. If a property does not qualify as a privatbostad, for example a pure investment property you have never lived in, it is instead classified as a näringsfastighet (commercial property) or näringsbostadsrätt (commercial co-op unit). In that case, rental income is taxed as business income (näringsinkomst) under different rules, with potentially significantly higher effective rates. If you are uncertain whether your property qualifies, consult a tax adviser or contact the Swedish Tax Agency (Skatteverket).
The 40,000 SEK standard deduction applies per property per tax year, not as one combined total per person. If you rent out two separate qualifying privatbostäder in the same year, you are entitled to a 40,000 SEK deduction for each of them.
Tax return
Rental income must be reported in your income tax return. You report the surplus at item 7.3 (surplus from renting out a private residence) on Inkomstdeklaration 1. Skatteverket's help form SKV 2199 can be used to calculate the surplus — it is not submitted, but kept as documentation. Remember to save documentation and receipts if you deduct your own costs. The standard deduction and the percentage deduction for houses do not require receipts.
Common mistakes
- Forgetting to declare: All rental income must be declared, even if it is below the standard deduction. The Swedish Tax Agency (Skatteverket) receives information about rentals from multiple sources.
- Mixing up deduction rules: Houses use the 20% deduction, not actual costs. Rental and co-op apartments use actual costs, not the percentage deduction.
- Wrong calculation period: Tax is calculated per calendar year. If your rental spans a year-end, you need to allocate income and deductions to the correct year.
Calculate your tax
Our calculator automatically computes the tax based on your housing type and rental period.
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