Skip to content

Income taxes in Finland

Picture of a person working on their computer doing their taxes.

Do you want to know how much you pay income taxes in Finland? Or have you heard about Finnish high taxes and are wondering if this is a real fact? And what is the salary in Finland after your tax reduction? 

Rules regarding taxation vary by country, so the tax system in Finland may be different from your country of origin. In this article, you will find an overview of income taxes, how you can estimate your tax rate in Finland, and what are your rights and responsibilities as an employed person.

Before we start diving into the subject, it’s important to note that in Finland, you will always get a gross salary offer. Dealing with taxation matters in Finland is one of the employee’s responsibilities. Therefore, before accepting or negotiating a wage remuneration, you need to have a good estimation of your net income and know how much your salary is after tax.

Paying taxes in Finland

Finland has a progressive income tax system. This means that your tax rate depends on the amount of your yearly income – the higher your salary, the higher the tax percentage you pay, and vice versa. This rate is calculated separately for every working person in Finland and applies to your wage and other means of income. The tax office will calculate it for you when you apply for a tax card.

The tax office in Finland is known as Vero. You can contact the authority by phone or visit one of the service points. Another very handy method of dealing with your tax matters is to use the online tax office’s services and access MyTax. You can log on to the service using strong online authentication via your online banking security codes.

The Finnish state and municipalities use the tax money to fund a wide array of services, including, among others, healthcare, education, and public services. Finnish healthcare system is one of the strongest in the world and covers all persons working in Finland. Taxes also support the Finnish education system, which receives global praise. Also, tax money is used to pay various social benefits and allowances for people that get unemployed, are on sick or parental leave, and those supporting the well-being of the people residing in Finland.

In addition to taxes, the employer withholds obligatory social security contributions (unemployment, pension, and healthcare contributions) in the amount of about 10% of your gross salary.

“Tax money is used to fund, among others, healthcare, education, and public services.”

Finnish tax card

You don’t need to make tax payments yourself. The employer withholds the taxes directly from your salary and passes them to the tax authorities. You just need to send to the employer your tax card. But no worries, we’re guiding and assisting you in applying for your first tax card or in changing a current one.

A tax card is a one-page document that shows your tax rate. You can apply for a tax card by phone or in person at the local tax office. If you have a Finnish bank account, you can also apply online. The tax card is free of charge.

To apply, you will need to estimate your income earned in Finland during the calendar year. In addition to the yearly income earnings, your home municipality or commuting expenses are also taken into account and might influence your tax rate.

To estimate your tax rate, you can use the online tax calculator provided by the Finnish tax administration.

If later on your income changes (for example, if you get a raise) or if you realize your income estimation was incorrect, you should order a new tax card. You should always notify the tax authorities if your yearly income estimate changes significantly.

Remember to apply for the tax card without delay. If you don’t have a valid tax card, your employer has to withhold 60% of your salary as tax.

If you work in the construction sector in Finland, you also need to have a tax number. The tax number proves that you’re registered with the Finnish Tax Administration. You will get the tax number together with your tax card.

Interested in Working in Finland?

Tax decision

Once a year, usually in March or April, you will receive a tax decision. It contains information on your income, taxes, and deductions for the previous year. If needed, you can make corrections to the form. If all information is correct, you don’t need to do anything – the process continues automatically.

The tax decision regarding the amount of taxes withheld from your salary was correct. If you have paid too much, you will receive a tax refund. If you have paid too little, you will have to pay back the tax.

Keeping your tax card up to date if your income changes are the best way to avoid having to pay back taxes!

In addition to the employee’s tax withholdings, the employer pays separately a significant tax share directly to the tax authorities. Your gross salary doesn’t include this amount. Alongside taxes, the employer pays mandatory insurance contributions and pension fees for each of the employees.

You can find more information on taxation in Finland on the tax office’s official website.

Jobs in Finland

Check out our open jobs or fill out an open application to get started on your way to Finland.

Income taxes in Finland Working in Finland Working in the Nordics