How Finnish Income Tax Works — Tulovero
Finland's income tax has two layers: state income tax (valtionvero) with progressive brackets from 12.64% to 34%, and municipal tax (kunnallisvero) which is a flat rate averaging ~20.5% depending on municipality. Combined effective rates can exceed 50% for high earners. Social contributions add another ~10%.
| State tax rate | Income |
|---|---|
| 0% | €0 – €20,500 |
| 12.64% | €20,501 – €30,500 |
| 19% | €30,501 – €50,400 |
| 30.25% | €50,401 – €88,200 |
| 34% | Above €88,200 |
- →Municipal tax (kunnallisvero): varies from 16.5% (Kauniainen) to ~23.5% — flat on the same income base
- →TyEL pension contribution: 7.15% (under 53) or 8.65% (53–62)
- →Health insurance contribution: 1.96%; unemployment insurance: 0.79%
- →Earned income deduction (työtulovähennys): up to €3,570 credit against municipal tax
- →Church tax (~1.4%): applies only to members of the Evangelical Lutheran or Orthodox church
- →File via OmaVero at vero.fi — pre-filled return arrives in April, confirm by May 2