| Scenario | Deduction in addition to 40,000 kr | Legal reference |
|---|---|---|
| Letting out a tenant-owned flat (bostadsrätt) | 20 % of rental income | Skatteverket, Chapter 42, section 30 Income Tax Act |
| Letting out a house or holiday home | 20 % of rental income | Skatteverket, Chapter 42, section 30 Income Tax Act |
| Subletting a rental flat (hyresrätt) | Your own rent for the part let out | Skatteverket, Chapter 42, section 31 Income Tax Act |
| Letting out an annexe building on your own plot | 20 % of rental income | Skatteverket, Chapter 42, section 30 Income Tax Act |
Standard deduction for letting out a residential property – how much can you deduct?
The standard deduction (schablonavdrag) for letting out a private residential property is 40,000 kronor per property per year. If you let out a property you own – a tenant-owned flat (bostadsrätt), house or holiday home – you can also deduct 20 per cent of the rental income. If you sublet a rental flat (hyresrätt) in second hand, you can instead deduct the rent you yourself pay for the part you are letting out. The amounts and percentage are set out in the Swedish Tax Agency's (Skatteverket) information on letting out a private residential property and are based on the rules in the Income Tax Act (inkomstskattelagen) (1999:1229) Chapter 42, sections 30–31.
This means that a large part of the rental income can be completely tax-free. Any surplus remaining after the deductions is taxed as capital income.
How to calculate your tax step by step
To find out how much you actually save, you need to work out your taxable surplus. Do this:
- Add up the year's rental income. Include both base rent and any charges for electricity, broadband and furniture that the tenant pays.
- Deduct the standard deduction of 40,000 kronor. The deduction applies per property per year, regardless of how many people are renting or how long the letting has been going on.
- Deduct the property-specific deduction. If you own the property, you deduct 20 per cent of the rental income. If you are subletting a rental flat, you deduct your own rent for the part you are letting out.
- Calculate the surplus. If the total comes to zero or negative, you pay no tax. If the surplus is positive, it is taxed in the capital income category.
- Report in your tax return. The surplus is entered on schedule K3 (tenant-owned flat), K5 (house) or directly in the income declaration when subletting a rental flat.
Worked example of standard deduction for letting out a residential property
Imagine you let out your tenant-owned flat furnished for 12,000 kronor per month for twelve months. The rental income is 144,000 kronor.
- Standard deduction: 40,000 kr
- 20 per cent of 144,000: 28,800 kr
- Total deduction: 68,800 kr
- Taxable surplus: 75,200 kr
- Tax: 22,560 kr
Without the deductions, the tax would have been higher. So you save significant money by making full use of the deductions.
When is it worth choosing actual expenses?
For letting out a private residential property, the standard deduction is the only option – you cannot choose to deduct actual operating costs such as electricity, heating or wear and tear (slitage). The rules are mandatory and give the same deduction level regardless of what costs you have had. This differs from business activities, where actual costs are reported.
What can vary is which property deduction you are entitled to. A subtenant (andrahandshyresgäst) deducts their own rent for the period, while a tenant-owned flat owner deducts 20 per cent of the rental income. House owners who let out all or part of the house also deduct 20 per cent.
What counts as rental income?
Everything you charge the tenant counts as rental income. This includes fixed monthly rent, charges for electricity, heating, broadband and any furniture allowance. However, a deposit (deposition) does not count as income, as it must be returned when the tenant moves out. More on what you can charge is in our guide on deducting furniture from rent when letting out.
What applies when letting out multiple properties in the same year?
The standard deduction of 40,000 kronor applies per property, not per tenant. If you let out the same property to several people during the year, you divide the standard deduction between them. However, if you let out two different properties – for example your flat when you are away and a holiday home in summer – you get 40,000 kronor in deduction for each property.
With short-term letting via platforms such as Airbnb, the same rules apply, but there may be a threshold where the activity becomes a business. Read more about short-term letting via Airbnb.
Mortgage interest and standard deduction
You cannot deduct mortgage interest from your rental income – the interest is instead deducted as usual in the capital income category, whether you are letting out or not. This is a common misunderstanding that we clarify in the article on interest deduction when subletting.
Checklist before filing your tax return
- Keep the rental agreement and any supplementary agreements about furniture or electricity.
- Keep running notes of received rents, preferably in a spreadsheet.
- Keep receipts for payments via Swish or bank transfer for at least seven years.
- Work out your total rental income for the calendar year.
- Deduct 40,000 kronor and the property-specific deduction.
- Fill in the correct schedule: K3, K5 or the employment income line for rental flats.
- Check that any fee to the tenant-owned flat association (bostadsrättsföreningen) for subletting has also been deducted (applies to tenant-owned flats).
If you need an agreement or inspection report before letting out, there are three documents for safe letting to download.
How the new Private Letting Act affects your tax
On 1 July 2026, the Private Letting Act (privatuthyrningslag) (2026:772) came into force and replaced the previous Act (2012:978) on letting out your own home. The new Act regulates the rental relationship between the parties – not the tax. The standard deduction and percentage are still governed by the Income Tax Act and the Swedish Tax Agency's (Skatteverket) application. What is affected, however, is when the Act applies: according to section 3, it does not apply if the landlord (hyresvärden) regularly lets out more than two flats that are not part of the landlord's own home. If you let out more properties, the activity may be assessed as a business, and then you lose the right to the standard deduction. We go through the new rules in detail in the new Private Letting Act (2026:772).
Frequently asked questions
What is the standard deduction for letting out a property in 2026? The standard deduction is 40,000 kronor per property per year. In addition, you get either 20 per cent of the rental income (owned property) or your own rent (rental flat).
Can I deduct both the standard deduction and actual costs? No. For private residential properties, the standard deduction is the only option. Actual operating costs such as electricity and heating cannot be deducted separately in addition to the standard deduction.
How is the standard deduction divided if there are two owners? The deduction of 40,000 kronor applies per property and is divided according to ownership share. Two spouses who each own half get 20,000 kronor in standard deduction each.
When does letting out become a business activity instead? Extensive letting of multiple properties, short hotel-like lettings or services beyond accommodation can mean that the Swedish Tax Agency (Skatteverket) assesses it as a business. Then different rules apply and the standard deduction disappears.
This text is general information and does not constitute legal or tax advice.
