The Danish government’s 2026 budget proposal, set to be presented on Friday, includes several key allocations and tax adjustments. Government parties have already released details of the proposal, which impacts various sectors.

A significant portion of the budget, DKK 1.1 billion, is earmarked for hiring 1360 additional employees in municipal day care facilities starting in 2026.

The proposal also addresses electricity tax, which will be reduced to the EU minimum in 2026 and 2027. This measure is estimated to cost DKK 14 billion.

To promote literacy, the government plans to eliminate VAT on books, with an annual cost of DKK 330 million. Furthermore, fees will be removed from select food producers at a cost of DKK 50 million annually. The coffee and chocolate tax will also be abolished, amounting to DKK 2.4 billion per year.

The budget also includes support for cultural and culinary arts, with DKK five million allocated annually to Danish circuses from 2026 to 2029. Subsidies for the national chef team and Bocuse d’Or will be increased to DKK four million annually from 2028 to 2029.

Allotment garden owners will see a reduction in their tax burden, with DKK five million allocated in 2025, increasing to DKK 15 million in 2029.

Healthcare receives attention, with DKK 20 million in 2026 and DKK 40 million annually from 2027 dedicated to patients with late effects after concussion. Additionally, DKK 68 million will be used to strengthen German and French language education. Pregnant women will be offered free RSV vaccine, with DKK 35.9 million allocated in 2026 and DKK 40.2 million in 2027 and onwards. Subsidies of DKK 200 million annually from 2026 onward will go towards food delivery services for the elderly in municipal settings.

In the realm of taxation, the government intends to provide tax deductions for exercise, singing, and music lessons, a move prompted by upcoming EU VAT regulations on these activities. The exact cost of this proposal is not yet clear.

Fertility treatment will be expanded, allowing couples and women to have up to six IVF attempts for a second child, instead of the current three, costing DKK 35 million per year.

Finally, inheritance tax for nephews and nieces will be reduced from 36 percent to 15 percent, aligning them with the deceased’s children. This change will cost DKK 100 million per year.