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Measure Name
Date when measure came into force
Solidarity taxes 2013/01/01
Taxes on earned income 2014/01/01
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Generic Tax Name Personal income tax - Taxes on earned income
Tax name in the national language Valtion tulovero ansiotulosta, kunnallisvero, kirkollisvero
Tax name in English State income tax on earned income, municipal income tax, church tax
Member State FI-Finland
Tax in force since 1992/12/30
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Income Tax Act of 30 December 1992 (1535/1992).

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



Beneficiaries are the State, the municipalities and the local communities of the Evangelical Lutheral or the Orthodox Church.

In national accounts the church tax is regarded as a transfer from households to non-profit institutions, not as a tax.

Geographical Scope

Municipal income tax: individuals and estates of deceased persons who are residents of the municipality in question.

Church tax: individuals who are members of the local communities of the Evangelical Lutheral or the Orthodox Church.

Domestic-source income of non-residents is Taxed
Not Taxed

Non‑residents are taxed on the income in Finland according to the Act on Withholding Tax on Non‑residents Income. See "Taxation of non-residents' income".

Employment incomes of married couples are Taxed jointly
Taxed separately


Church tax: taxpayers are individuals who are members of the local communities of the Evangelical Lutheral or the Orthodox Church.

Tax object and basis of assessment
As general rule, taxable income under personal income tax includes


Finland applies a dual income tax system, where capital (investment) income and earned income are taxed separately. On taxation of capital income see "Personal income tax - Tax on investment income".

Taxable earned income includes wages and salaries (including fringe benefits), pensions, social benefits, unemployment benefits, earned income share of business income and income from agriculture as well as the earned income share of income from partnerships, the earned income share of dividends distributed by non- listed companies, scholarships and awards, royalties and other similar remuneration in respect of copyright, if these rights are a consequence of the taxpayer's own activity, and 80 % of the distributions from employee investment funds.

Interests mentioned above are taxed under Withholding tax at source on interest.

Income considered Domestic income
Worldwide income (subject to double-tax relief)

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable


Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:


There is a standard lump sum deduction of EUR 620 for professional expenses. Professional expenses exceeding the standard deduction are also deductable on application.

There is also a deduction of 250 €/month for a rented flat that enables a taxpayer to reach his regular place of work.

Deductions from the tax base
The following items are usually (partially or fully) deductible


Deductable from earned income tax base are all expenses incurred in aquiring and maintaining chargeable income (natural deductions).

Also deductible are employees' obligatory pension insurance contribution, unemployment insurance contribution and health insurance contribution for daily allowance.

Travelling expenses from the place of residence to the place of employment using the cheapest means of transportation are deductable in excess of EUR 750 up to a maximum deduction of EUR 7,000.

Interest on mortgages is deductible from capital income.

Deficit in the category of capital income is also deductible from earned income tax, up to a maximum of EUR 1,400.

The basic yearly allowance for an individual amounts to: 2,970.00  EUR/National currency
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents

State income tax

There is a pension income allowance, deductions granted to sailors and forestry workers and a discretionary allowance for circumstantial incapacity to pay taxes.

Municipal income tax and Church tax

The basic allowance is granted on the basis of taxable income remaining after the other allowances in municipal taxation have been subtracted. The maximum amount, EUR 2,970, is reduced by 18 % of income exceeding EUR 2,970. 

An earned income allowance is calculated on the basis of taxpayers' income from work. The allowance is 51 % of income between EUR 2,500 and EUR 7,230, and 28 % of income exceeding EUR 7,230, until it reaches its maximum EUR 3,570. The amount of the allowance is reduced by 4.5 % of earned income minus natural deductions exceeding EUR 14,000.

There are also the following allowances:

  • a pension income allowance
  • deductions granted to sailors and to forestry workers
  • a disabled persons allowance
  • a student grant allowance
  • a discretionary allowance for circumstantial incapacity to pay taxes

The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

  • An earned income tax credit is granted against state income tax on earned income. If the credit exceeds the amount of tax, the excess is credited (proportionally) against municipal tax, church tax and health insurance contribution for medical care. The credit is 8.6 % of income from work exceeding EUR 2,500. The maximum credit is EUR 1,025. If the taxpayer's earned income after natural deductions exceeds EUR 33,000, the credit is reduced by 1.2 % of the excess.
  •  A tax credit for domestic work is granted on the basis of ordinary housekeeping work, nursing and provision of care and maintenance (excluding health care services that are exempted from VAT), repair and fundamental improvement of dwellings (excluding repair and installations of domestic appliances) and installation, maintenance and quidance concerning equipment, software, security and telecommunication links relating to information and communication technology. The maximum annual credit is EUR 2,400 per person.
  • A study loan credit: 30 % of the loan capital exceeding EUR 2,500.
  • Disability credit of maximum EUR 115.  
  • Child maintenance credit of maximum EUR 80.

Deficit in the category of capital income is deductible from earned income tax, up to a maximum of EUR 1,400.

Losses can be
Carried-forward for Indefinite
Carried-back for Indefinite
Transferred to spouse or partner

Losses in the category of earned income are deductible from the earned income during the 10 years following the tax year. 

Deficit in the category of investment income is also deductible from earned income tax, up to a maximum of EUR 1,400.

The following income is exempted from income tax


Exempted from income tax are certain pensions and social benefits, inheritances and gifts, amounts received as maintenance for a child, major national and international awards, most scholarships, most part of income derived by a resident individual from employment abroad lasting at least six months, certain compensation for specific expenses paid to persons serving at Finnish diplomatic missions or consular posts, indemnification in certain cases, daily allowances and travelling allowances, certain benefits provided by the employer for the personnel, income from certain natural products.

Interest from bank accounts, deposits and certain bonds ia taxed under Withholding tax at source on interest. For taxation of for example capital gains and rental income, see "Personal income tax - Tax on invesment income".  

Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  16,500.00  EUR/Natcur
To  24,700.00  EUR/Natcur
Rate: 6.50 %
Bracket 2 From  24,700.00  EUR/Natcur
To  40,300.00  EUR/Natcur
Rate: 17.50 %
Bracket 3 From  40,300.00  EUR/Natcur
To  71,400.00  EUR/Natcur
Rate: 21.50 %
Bracket 4 From  71,400.00  EUR/Natcur
To  90,000.00  EUR/Natcur
Rate: 29.75 %
Bracket 5 From  90,000.00  EUR/Natcur
To   EUR/Natcur
Rate: 31.75 %

Above is the State income tax scale. Municipal income and church taxes are levied at flat rates.

In 2015, the municipal income tax rate varies between 16.50 and 22.50% according to the municipality, with a weighted average of 19.84%.

In 2015, the church tax rate varies between 1.00 and 2.00% according to the municipality, with an average of 1.43%.

There is an additional tax of 6 %-points on pension income exceeding 45,000.00 EUR. The tax is in force since 2013.

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income: 18.5 %
A tax surcharge:

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Annuities from life insurance
Prizes and awards
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities

Withholding taxes
The tax is withheld when paid to residents on: Dividends: 7.50 %
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits:
Final Creditable

Withholding tax on dividends from non-listed companies is 7.50 % and on dividends exceeding 150,000.00 EUR 27.00 %.

Withholding tax is 25.50 % for dividends from listed companies.

Tax due date

Tax collector

The employer, or any other person or agency paying a salary or other income or benefit is obliged to withhold an advance payment on salaries, wages and other sums paid.

Special features

Partnerships are not taxed separately. Their income is divided among the partners and is taxed as their personal income.

Income spreading is applied in certain cases.

Economic function

Environmental taxes

Tax revenue
ESA95 code d51m (d51a + d51c1)

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 23,213.00 EUR 11.62
2011 22,583.00 EUR 11.47
2010 21,294.00 EUR 11.38
2009 21,699.00 EUR 11.99
2008 22,602.00 EUR 11.67
2007 20,995.00 EUR 11.25
2006 20,291.00 EUR 11.76
2005 19,857.00 EUR 12.08
2004 19,223.00 EUR 12.13
2003 19,094.00 EUR 12.60
2002 19,221.00 EUR 12.96
2001 18,713.00 EUR 12.96
2000 17,710.00 EUR 13.00


Tax revenue includes revenue from state income tax, municipal income tax and church tax.

In 2012 the revenue from these taxes was: 


  • state income tax: 5,290 M€
  • municipal income tax: 17,029 M€
  • church tax: 894 M€.  

In national accounts the church tax is regarded as a transfer from households to non-profit institutions, not as a tax.