Finland Personal Income Tax Guide 2026 (Ansiotulovero)

State Income Tax (Valtionvero) Tiers 2026

State tax is progressive with four brackets. The first €19,200 of taxable earned income is tax-free at the state level. Income between €19,201 and €28,700 is taxed at 6%. Income between €28,701 and €48,800 is taxed at 17.25%. Income between €48,801 and €86,700 is taxed at 21.25%. Income above €86,700 is taxed at 31.25%. These thresholds are adjusted annually for inflation. The state tax is in addition to the municipal tax, which applies to all earned income.

Municipal Tax (Kunnallisvero)

Municipal tax is a flat rate applied to all earned income. The rate varies by municipality, ranging from approximately 7.3% (e.g., Kauniainen) to 9.4% (e.g., some smaller rural municipalities). The average rate across Finland is roughly 7.8% for 2026. Municipal tax is levied on the same taxable income as state tax but without any tax-free allowance at the municipal level — though the municipal tax includes an automatic basic deduction (perusvähennys) of up to about €3,600 for low-income earners.

Church Tax

Members of the Evangelical Lutheran Church or the Orthodox Church pay church tax (kirkollisvero), which ranges from 1.0% to 2.1% depending on the parish. About 65% of Finns are members of the Evangelical Lutheran Church. You can resign from church membership to avoid this tax, which is processed through the tax card.

TyEL (Employee Pension Contribution)

Employees between 17 and 52 years old pay a TyEL pension contribution of approximately 7.15% of gross salary (2026 rate). Employees aged 53 to 62 pay approximately 8.65%, and those 63 and older pay approximately 7.15%. These contributions are tax-deductible and are automatically deducted from your salary. The employer also contributes approximately 17.35% on top of your salary. Your TyEL contribution appears on your payslip and annual tax summary.

Deductions

Key deductions include: earned income deduction (työtulovähennys) of up to about €6,500 automatically applied by the tax authority, basic deduction (perusvähennys) for low-income earners, commuting costs between home and work (exceeding €900 per year, up to a maximum deductible amount), trade union and unemployment fund membership fees, pension insurance contributions (TyEL), and interest on owner-occupied housing loans (limited). Some deductions are automatic; others must be claimed in your tax return.

Verokortti (Tax Card)

Every employee in Finland must have a verokortti (tax card) issued by the Tax Administration (Verohallinto). Your employer uses the tax card to withhold the correct amount of tax from your salary. The tax card shows your tax rate, which is calculated based on your estimated annual income, deductions, and tax credits. You can request a new tax card online through the OmaVero service if your circumstances change during the year (e.g., salary increase, new job, or additional income). There are two types: a general tax card (yleisverokortti) used for salary, and a separate card for pension income.

Tax Return Filing

Finland uses a pre-filled tax return system. The Tax Administration sends a pre-completed tax return (veroilmoitus) in April or May each year, covering the previous tax year. Most employees only need to check the pre-filled information and make corrections if needed. Corrections and additions can be made through the OmaVero online service. The deadline for reviewing and submitting changes is usually in May. Any tax refunds are typically paid in July-August, while additional taxes must be paid by August or February of the following year.

FAQs

What is the total maximum tax rate in Finland?

The combined maximum marginal tax rate on earned income (including state tax, municipal tax, and church tax) is approximately 56.5% for high-income earners in 2026.

Do I pay tax if I move to Finland?

If you stay in Finland for more than 6 months, you are considered a tax resident and taxed on worldwide income. Non-residents are taxed only on Finnish-source income at a flat 35% rate.

How do I get a tax card as a foreign worker?

Register with the Tax Administration, obtain a Finnish personal identity number (henkilötunnus), and apply for a tax card through OmaVero or at a tax office.