The Danish government’s 2026 budget proposal, set to be presented on Friday, includes a variety of initiatives across different sectors. Government parties have already revealed several key aspects of the proposal.

A significant allocation of DKK 1.1 billion from 2026 will fund 1360 additional employees in municipal daycare facilities nationwide. The budget also proposes reducing the electricity tax to the EU minimum in 2026 and 2027, at a total cost of DKK 14 billion.

Several tax and fee reductions are also planned. VAT on books will be eliminated, costing DKK 330 million annually, and fees for certain food producers will be removed at a cost of DKK 50 million per year. The coffee and chocolate tax will also be abolished, with an annual cost of DKK 2.4 billion.

The budget includes support for cultural and culinary endeavors. Danish circuses will receive a total of DKK 5 million annually from 2026 to 2029, and subsidies for the national culinary team and Bocuse d’Or will increase to DKK 4 million annually from 2028-2029.

Allotment garden owners will see eased tax burdens, with DKK 5 million allocated in 2025, rising to DKK 15 million in 2029. Patients experiencing long-term effects from concussions will benefit from strengthened support, with DKK 20 million allocated from 2026 and DKK 40 million annually from 2027.

Education and healthcare receive attention in the proposal. DKK 68 million is allocated to strengthen German and French language programs. All pregnant women will be offered a free RSV vaccine, with DKK 35.9 million allocated in 2026 and DKK 40.2 million in 2027 and onwards. Elderly individuals will find it more affordable to have food delivered, with DKK 200 million allocated annually from 2026 onwards.

The government also plans to introduce tax deductions for exercise and music lessons to offset the impact of upcoming EU VAT regulations. Fertility assistance for a second child will be expanded, allowing couples and women up to six IVF attempts instead of three, at a cost of DKK 35 million per year.

Inheritance tax for nephews and nieces will be reduced from 36 percent to 15 percent, aligning them with the deceased’s children, at an annual cost of DKK 100 million. Finally, requirements for municipal and regional corporate separation and municipal offsetting for solar cells for own consumption will be removed, with an expected cost of DKK 400 million from 2026 to 2030.