To avoid residual tax, increase the tax deduction on the pension

Those who are retired or about to retire may need to check that pension payers make sufficient tax deductions in 2022. A pensioner often receives a pension from several different payers and those who are still working also receive a salary. Anyone who receives income from several payers risks receiving arrears in 2023 because the total tax deductions on income the year before may be too low.

The easiest way to avoid residual tax is to ask your pension payer or employer to deduct more tax. You can, for example, increase your tax deduction on the general pension from the Swedish Pensions Agency. This way, you can easily avoid residual tax, says Eva Bodén, business developer at the Swedish Tax Agency.

The withholding tax is due to the fact that the person who pays out the main income, ie the highest pension or salary, only deducts tax according to the tax table for this particular income. The tax deduction can then be too low because other payers must deduct 30 percent in tax.

It is also possible to request an adjustment of tax. Anyone who does not want to increase the tax deduction themselves can instead request an adjustment from the Swedish Tax Agency to avoid residual tax. You can apply for an adjustment either in the e-service or on a paper form. An application for adjustment can be made at any time during the year, but those who want to adjust for 2022 need to apply for it no later than 8 November. An adjustment applies until the end of the year at the latest.


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