Income tax rate in Finland

Income in Finland is subject to progressive state taxation. This means implies that the tax rate increases with the taxable income. The income tax rate is also influenced by place of residence, religious affiliation and various deductions.

The state income tax rate varies between 12.64% and 44% depending on the taxable income:

• income from 0 to 20500 is taxed at 12.64%;
• income from 20500 to 30500 is taxed at 19%;
• income from 30500 to 50400 is taxed at 30.25%;
• income from 50400 to 88200 is taxed at 34%;
• income from 88200 to 150000 is taxed at 42%;
• income from 150000 is taxed at 44%.

The income tax rates of the municipalities in 2024 range from 4.40% to 19.70%.

Municipal income tax rates in 2024 range from 1% to 2.25%.

Deadlines for income tax returns

March/April is when the Finnish Tax Office sends out pre-filled tax returns, indicating any over- or underpayment of tax.

May 7, May 14, or May 21, 2024, are the deadlines for making corrections to the pre-filled tax return, as indicated on the tax return and the Finnish Tax Agency’s MyTax website.

April 2, 2024, is the deadline for self-employed persons to submit a tax return (Form 5) and their personal pre-filled tax return.

During the year, self-employed persons must make advance payments, with the amount calculated by the tax office based on the last final tax statement.

Non-taxable minimum in Finland

There is no “non-taxable minimum” in Finland. However, there is a deduction for earned income:

• 51% for income between EUR 2500 and 7230;
• 28% for the part exceeding EUR 7230.

If your net taxable earned income exceeds EUR 14000, the deduction is reduced by 4.5% for the excess. If your net taxable income exceeds EUR 93333, this deduction is not available. The maximum deduction for 2024 is EUR 3570.

Deductions

In Finland, you can claim various tax deductions that reduce the amount of tax payable. Some deductions are granted automatically, while others must be claimed by the taxpayer.

The following deductions are granted automatically:

• EUR 750 deduction for income earned in 2024;
• deduction for earned income (up to a certain amount);
• credit for earned income (up to a certain amount);
• basic deduction (up to the maximum amounts);
• deduction for pension income (up to the maximum amounts);
• deduction for educational grants;
• credit for student loans;
• deduction for seafarers’ income.

In addition, it is possible to change or add the following deductions or tax credits:

• tax credit for household expenses (up to a certain amount);
• business travel expenses (up to a certain amount);
• deductions for employees in the forestry industry;
• loans in connection with maintenance obligations;
• membership fees and contributions to the unemployment fund;
• pension insurance contributions;
• expenses for the management and safekeeping of investments;
• interest expenses on loans (if they are used to generate income).

Obtaining a tax number in Finland

In Finland, the tax number is the Finnish personal identity code. Finnish identity codes are issued by the Digital and Demographic Data Authority. In some cases, the Finnish Immigration Service or the Finnish Tax Administration can also issue identification numbers for foreigners.

In Finland, everyone who earns an income must have a tax card. You can order a tax card in the following ways:

• submit an application to MyTax (the Tax Administration’s electronic service);
• send a paper application to the tax office;
• apply in person at the tax office.

In Finland, the correct tax card is important; there are different types of tax cards. It is possible to apply for the tax card online or on paper using form 5010e.

Procedure for refunding overpayments

An income tax return must be submitted in order to initiate a refund of overpaid taxes. The tax refund is paid directly to the bank account specified by the taxpayer. It can be submitted via the OmaVero online service or in paper form. If the tax office does not know the bank details, the refund will be made by postal order or bank transfer from Nordea Bank.

Taxpayers receive the refund on different dates, depending on the completion of the tax assessment procedure. The date and amount of the refund can be seen in MyTax and in the tax assessment notice.

Penalty

For natural persons, a penalty of EUR 50 is assumed:

• for late submission of an entrepreneur’s income tax return;
• for the late voluntary submission of a natural person’s pre-filled income tax return.

A tax increase of at least EUR 75 is assumed:

• for errors in a tax return that are not voluntarily corrected before the end of the assessment period.