Finland tax rates 2026

Municipal tax at the rate of the home municipality and church tax for members come on top of the state scale. The employment income credit, 18% of pay up to €3,430, and the basic allowance of up to €4,265 cut the bill on lower incomes.

Residency in Finland turns on two tests. A person whose permanent home is in Finland is resident, and so is anyone who stays more than six consecutive months without one. Short trips abroad do not break the stay, and the reason for being in the country does not matter. A stay of exactly six months still counts as non-resident.

Resident income is split into two streams. Earned income, which covers pay, pensions and benefits, goes through the progressive state scale and a flat municipal tax set by the home municipality. Capital income is taxed on its own scale. Pension income above €60,000 carries an additional 5.85%, and the public broadcasting tax takes 2.5% of income above €15,150, capped at €160.

The tax year is the calendar year. Employers withhold tax at the percentage on the tax card the Tax Administration issues, and a revised card can be requested in MyTax whenever income or deductions change, so most tax is settled during the year. Wage earners receive an automatic €750 deduction for the cost of earning income; larger expenses are listed item by item on the return.

In spring the Tax Administration sends a pre-completed return filled in with figures from employers, banks and other payers. When every figure is right, nothing needs to be sent back. Corrections and additions are due by the date printed on the first page, which in 2026 was 1, 14, 21 or 28 April for the 2025 tax year. A corrected return leads to a new tax decision, issued between May and October.

Non-residents pay Finnish tax only on Finnish-source income. Wages from a Finnish employer, or from a foreign employer with a permanent establishment in Finland, carry a final 35% tax at source, and no Finnish return is needed. A tax-at-source card lets the employer first deduct €510 a month or €17 a day.

Residents of an EU country, Norway, Iceland, Liechtenstein or any country with a tax treaty with Finland can choose progressive taxation instead. The rate then reflects the whole year's income and deductions, including commuting costs, and the Tax Administration sends a pre-completed return the following spring. EU and EEA residents who earn at least 75% of their income in Finland can ask for their foreign income to be left out of the calculation. Municipal tax for non-residents is 7.60%.

Dividends from listed companies are 85% taxable as capital income and 15% tax-free, and the paying company withholds 25.5% up front. Dividends from unlisted companies are split between capital income, earned income and a tax-free part according to the mathematical value of the shares; the payer withholds 7.5% on the first €150,000 and 28% above that. Interest on ordinary bank deposits carries a final 30% tax at source, withheld by the bank, and stays off the return.

Gains on shares are computed on the actual purchase price and costs or on a deemed acquisition cost of 20% of the sale price, rising to 40% after ten years of ownership. Losses offset capital gains first and then other capital income, and unused losses carry forward five years. The sale of a home is exempt after two years of ownership and two years of permanent, continuous residence by the owner or family. An equity savings account takes up to €100,000, and trades and dividends inside it are taxed only on withdrawal.

Employees pay 7.30% to the earnings-related pension scheme in 2026, the same rate at every age, plus 0.89% unemployment insurance. The health care contribution of 1.10% and the daily allowance contribution of 0.88%, charged once annual wage income reaches €17,255, are built into the withholding percentage. Together that comes to 10.17% of pay. Pensions and benefits carry a 1.49% health care contribution instead.

Employers pay an average pension contribution of 17.10%, a health insurance contribution of 1.91% and unemployment insurance of 0.31% on annual payroll up to €2,509,500, rising to 1.23% on the part above. Occupational accident and group life insurance are compulsory on top. The self-employed carry their own pension insurance and pay a higher daily allowance contribution of 1.11%.

The 2026 budget cut the top marginal rate on earned income to 52% and indexed the lower state bands for inflation. The employment income credit rose by €205 and its increase per child to €105, doubled for single parents, while the basic allowance rose by €150. Trade union fees and the standard home-office deduction are no longer deductible, though unemployment fund fees still are. The reduced VAT rate of 14% fell to 13.5%.

Inheritances below €30,000 are now tax-free, up from €20,000, and gifts from one donor stay tax-free up to €7,499 over three years, up from €4,999. Key employees recruited from abroad pay 25% tax at source, down from 32%, for up to 84 months. They need a cash salary of at least €5,800 a month, work requiring special expertise and no Finnish tax residence in the five calendar years before starting, and must request the card within 90 days.

Key employee regime: a 25% flat tax at source for 84 months from 1 January 2026, down from 32%.