Significant Economic and Social Policy Changes to Impact Swedish Households in 2026

Swedish households face a series of impactful economic policy changes in 2026 with tax reliefs, mortgage regulation adjustments, and social benefits reforms set to reshape their financial landscape.

Starting April 1, 2026, the VAT on food will be halved from 12% to 6%, providing direct relief on groceries through the end of 2027. The job tax deduction will increase from January 1, leading to a tax reduction of about 400 SEK monthly for individuals with average wages. Pensioners aged 66 and above will benefit from approximately 150 SEK monthly lower taxes thanks to an enhanced basic deduction. Additionally, dental care costs for people aged 67 and older will be subsidized by the state at 90%, covering treatments like fillings and root canals.

A notable change in mortgage policy includes lifting the amortization requirement on April 1 and raising the loan-to-value ceiling from 85% to 90%, pending parliamentary approval. This move aims to ease borrowing but may drive housing market prices up, a prospect noted by economic strategist Mattias Isakson from Swedbank. He also highlighted the stable monetary policy stance as the European Central Bank keeps interest rates unchanged.

Moreover, the tax-free savings allowance on investment savings accounts and capital insurance will double from 150,000 SEK to 300,000 SEK per person. However, interest deduction for unsecured loans (blancolån) will be eliminated starting 2026, affecting around 5.8 million people.

Social policy reforms include calls by Social Democrats to abolish the waiting period for sick pay, advocating for payment from the first day of illness to reduce financial hardship on low-income and public service workers. Surveys reveal economic pressure drives many, especially women, to work while sick, with union Kommunal reporting over half its members have done so multiple times in the past year.

Further measures encompass increasing the housing benefit cost ceiling for families with children and expanding the repatriation grant for protection-seeking immigrants to 350,000 SEK per adult. Meanwhile, uranium mining will be permitted again, though municipalities retain veto rights.

These combined changes represent a significant shift in Sweden’s economic and social policy framework for 2026, aiming to improve economic security and support for various demographics amid evolving financial conditions.