Living in Finland

Cities

Verotus
theme icon

Taxation

In Finland, you pay income tax (tulovero) on your salary. You must also pay taxes on the following income:

  • unemployment allowance
  • parental allowance
  • pensions
  • study grant

With tax money, the state and municipalities pay for the following, for example:

  • health care
  • education
  • day care
  • defence

In Finland, taxation is progressive. This means that the tax rate (the share of taxes) is larger for a larger salary than for a smaller salary. A withholding tax percentage (veroprosentti) is calculated separately for each person in Finland. The spouse’s income does not affect your withholding tax percentage. You can estimate your own tax percentage using the Tax Administration’s calculator.

The employer withholds taxes directly from your salary. For that purpose, the employer must have your tax card. The tax that is withheld directly from your salary is the withholding tax (ennakonpidätys). After each year, the Tax Administration calculates whether a sufficient amount of taxes has been withheld from the income. If you have paid too much in tax, you will receive a tax refund (veronpalautus). If you have not paid enough in tax, you will have to pay back tax (jäännösvero).

Further information: Tax return and tax decision.

Check your salary slip and tax return (veroilmoitus) to ensure that your employer has withheld taxes from your salary. Retain your salary slips. If the tax has not been withheld, you will have to pay it in arrears.

In addition to taxes, your employer will withhold insurance payments from your salary for unemployment and sickness, for example.

linkkiFinnish Tax Administration:
Information about taxationFinnish | Swedish | English

linkkiFinnish Tax Administration:
Tax cardFinnish | Swedish | English

linkkiFinnish Tax Administration:
Tax percentage calculatorFinnish | Swedish | English

Taxation when you come to work in Finland

If you come from abroad to work in Finland, your taxation depends on how long you will stay in Finland. Taxation also depends on whether your employer is a Finnish or a foreign company.

If you reside in Finland for more than six months, you must usually pay taxes on your salary in Finland. Usually, you must also pay the obligatory insurance payments in Finland. You need a Finnish personal identity code and a tax card. The tax percentage is calculated on the basis of the income for the whole year. You will be granted tax deductions on the same basis as everyone else who lives permanently in Finland.

If you reside in Finland for six months at the most and your employer is a foreign company, you do not usually need to pay taxes in Finland. If your employer is Finnish or your foreign employer has an office in Finland, you will pay taxes in Finland. You can apply for progressive taxation if you live in a country that belongs to the European Economic Area or a country with which Finland has a tax agreement. Otherwise, you will pay 35% tax at source (lähdevero) on your salary and you must have a tax-at-source card. For progressive taxation, you must have a non-resident's tax card (rajoitetusti verovelvollisen verokortti). You can obtain it from a tax office. You can also apply for progressive taxation afterwards.

You will also have to pay insurance payments if you are not insured in the country in which you reside permanently. If you already have an insurance cover from another country, you need to have a certificate of the insurance (A1/E101).

When you move away from Finland, remember to submit a notification of the move to the Local Register Office. This will ensure that your tax return will be sent to the correct address.

When you are moving to Finland, you can find more information on the Infopankki page Moving to Finland.

linkkiFinnish Tax Administration:
Coming to work in FinlandFinnish | Swedish | English

linkkiFinnish Tax Administration:
Application for progresive taxationFinnish | Swedish | English

linkkiFinnish Tax Administration:
Foreign temporary workers and Finnish taxationFinnish | Swedish | English | Russian

linkkiMuuttoilmoitus.fi:
Notification of moveFinnish | Swedish | English