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Table 9 Formula for the Swedish EITC, by step

From: Women’s and men’s responses to in-work benefits: the influence of children

Earned Income (EI)

0 – 0.91 BA

0.91 BA – 2.72 BA

2.72 BA – 7.00 BA

7.00 BA –

Step 1 (2007)

(EI <0.79 BA)

(0.79 BA < EI < 2.72 BA)

(EI > 2.72 BA)

 
 

(EI – BD) * LITR

(0.79 BA + 0.200 * (EI – 0.79 BA) – BD) * LITR

(1.176 PBB – GA) * LITR

 

Step 2 (2008)

(EI – BD) * LITR

(0.91 BA + 0.200 * (EI – 0.91 BA) – BD) * LITR

(1.272 BA + 0.033 * (EI – 2.72 BA) – BD) * LITR

(1.413 BA – BD) * LITR

Step 3 (2009)

(EI – BD) * LITR

(0.91 BA + 0.250 * (EI – 0.91 BA) – BD) * LITR

(1.363 BA + 0.065 * (EI – 2.72 BA) – BD) * LITR

(1.642 BA – BD) * LITR

Step 4 (2010)

(EI – BD) * LITR

(0.91 BA + 0.304 * (EI – 0.91 BA) – BD) * LITR

(1.461 BA + 0.095 * (EI – 2.72 BA) – BD) * LITR

(1.868 BA – BD) * LITR

  1. Note: BA basic amount, BD basic deduction, LITR local income tax rate. BA = 40 300 SEK in 2007 (39 700 SEK in 2006, 41 000 SEK in 2008)