Field Notes

concept

Egenavgifter

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Egenavgifter are the social contributions a Swedish sole trader pays on the surplus of their own business, occupying the place Arbetsgivaravgifter occupies for an employer. The full rate is 28.97 percent for 2026.1

The base is what most often trips up a new sole trader. The charge falls on the business surplus, not on what the owner withdraws from the business account. A withdrawal is neither salary nor a deductible cost, so taking less money out does not reduce the contributions and taking more does not increase them.

What the rate is made of

Component Rate
Allmän löneavgift 11.62%
Ålderspensionsavgift 10.21%
Sjukförsäkringsavgift 3.64%
Föräldraförsäkringsavgift 2.60%
Efterlevandepensionsavgift 0.60%
Arbetsskadeavgift 0.20%
Arbetsmarknadsavgift 0.10%

The sickness-insurance component is the one the trader chooses. It varies with the waiting period elected before sickness benefit begins, from 3.75 percent at a one-day waiting period down to 2.90 percent at ninety days, applied to income up to ten price base amounts.1 A longer waiting period is a lower running cost bought with a longer unpaid gap during an actual illness, so it is an insurance decision rather than a tax optimization.

The general reduction

A trader paying the full contribution receives a reduction of 7.5 percent of income up to 200,000 SEK, capped at 15,000 SEK, provided business income exceeds 40,000 SEK.1

The cap changes what the relief is worth across the range it covers. It reaches its maximum at 200,000 SEK and shrinks as a share of income above that, so it matters most to a business at the scale where the owner is still deciding whether the activity is viable.

Comparing forms

The contribution rate alone does not decide between a sole trader and a limited company. A sole trader pays 28.97 percent on surplus and is taxed personally on it. A company owner faces Arbetsgivaravgifter at 31.42 percent on salary, or the dividend route in Utdelning i fåmansföretag, after the company has paid corporate income tax on its profit. Both forms pay Preliminärskatt monthly against an expected outcome. Swedish business tax map routes between the layers, and the entity choice also turns on liability, administration, and pension treatment that no rate comparison captures.

  1. Verksamt.se, egenavgifter, captured 2026-07-29 in Verksamt.se guidance on egenavgifter. ↩↩↩

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