New 2026 Tax Rules Increase Basic Deduction on ISK and KF Savings but Raise Tax Rate for Large Holders

Starting in 2026, new tax regulations will significantly impact investment savings accounts (ISK) and capital insurance (KF) in Sweden. The key change is that the basic deduction limit—the tax-free threshold—has doubled from 150,000 kronor to 300,000 kronor per individual, applying collectively across ISK and KF accounts. This means savers with combined holdings of 200,000 kronor in ISK and 200,000 kronor in KF will still only get one deduction of 300,000 kronor, not separate ones for each account.

While most savers will benefit from this increased deduction resulting in an overall lower tax burden, individuals with savings exceeding 300,000 kronor will face a higher tax rate of 1.065% on the capital base. This rate is based on the standardized interest rate and is noted as the second highest ever recorded. Specifically, savers holding over 1 million kronor in ISK or KF can expect to pay more tax than before the new rules come into effect.

The tax handling process differs between ISK and KF accounts. Tax on ISK is pre-filled automatically in taxpayers’ declarations, simplifying reporting, whereas tax on KF is directly deducted from the account and adjusted during tax return processing.

These changes are part of broader financial regulation reforms introduced for 2026, alongside other economic measures, but the updated rules around ISK and KF savings accounts specifically target how investment returns are taxed to balance benefits across different saver groups.

The adjustments aim to ease the tax burden on most savers by expanding the basic deduction, while ensuring that higher wealth holders contribute a bit more. This reform aligns with Sweden's ongoing efforts to fine-tune taxation in the investment sector for fairness and efficiency.