Taxes in Finland in 2026

Tax rates in Finland in 2026: at a glance

Finland collects income tax into two pockets: the state, on a scale from 12.64% to 37.5%, and the municipality, at the local rate. From 2026 the top marginal rate including all taxes has been cut to about 52%, but an average salary still gives up a noticeable share. The essentials are in one table.

Taxes are collected by the Finnish Tax Administration, while each municipality sets its own rate. So the same income is taxed differently in Helsinki and in a small town.

Compare taxes in 146 countries: relocation taxes 2026

Who counts as a tax resident

You are a tax resident of Finland if you have a permanent home or habitual place of residence in the country, or if you stay in Finland continuously for more than six months.

Finland tax residency rules: how to become resident and count days

Finland makes you resident through a permanent home in the country or after more than 6 months of stay in a row. Temporary trips do not break the count: a week in Tallinn does not reset it.

Leaving is harder than arriving. A Finnish citizen stays resident for 3 years after leaving unless they prove essential ties are cut: a home, a spouse in Finland, a business. A resident pays progressive tax on worldwide income, a non-resident only on Finnish income.

Mistakes cost more: a flat or a running company left behind extends residence for years, while your new country also treats you as resident. Murblz support removes these risks: we review the ties, prepare proof that they are cut, obtain a residence certificate from the new country and apply the double tax treaty. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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Tax rates

The main rates in Finland:

• Personal income tax - 12.64-37.5%. A progressive scale. On top of that, a municipal tax of 4.7% to 10.9% applies, depending on the municipality.
• Corporate income tax - 20%. Charged on the company's worldwide income.
• Value added tax - 25.5%. The standard rate.
• Social contributions for employees: health insurance - 1.98%, pension insurance - 7.3%, unemployment insurance - 0.89%.
• Property tax - 0.41-2%.
• Transfer tax - 3%. On flats in housing companies and on securities - 1.5%.

Finland's northern neighbours take a similar share: taxes in Norway reach 47.4% on salary with 25% value added tax, and taxes in Iceland run from 31.49% to 46.29% with 24% value added tax.

State income tax scale in 2026

Municipal tax is added on top - from 4.7% to 10.9% depending on the municipality, around 5.3% in Helsinki. Members of the state church pay church tax of 1-2%. From 2026 the top marginal rate including all taxes was cut to about 52% from 59%.

Deductions that reduce the tax

• Earned income deduction - up to $3,900 (€3,430) a year, plus $120 (€105) per child, doubled for single parents.
• Municipal basic deduction - up to $4,800 (€4,265) for small incomes.
• Trade union fees are no longer deductible from 2026.

How much tax on a salary: an example

To see how the burden adds up, take an employee in Helsinki earning $4,500 (€4,000) a month who is not a church member. Pension and unemployment contributions and the standard $840 (€750) deduction for income-earning expenses reduce the base, while health contributions are calculated on the full salary.

This is an example using the 2026 scale; it does not include the earned income credit of up to $3,900 (€3,430), child credits or commuting deductions, which lower the total. The exact withholding rate is shown on the tax card that the employee gives to the employer.

Capital income tax

• Rate - 30% on income up to $34,000 (€30,000) a year and 34% above.
• Dividends from listed Finnish companies - 85% is taxable, an effective 25.5-28.9%.
• Sale of shares, funds, crypto-assets, property - the gain is taxed as capital income. Instead of actual costs you can deduct 20% of the sale price, or 40% after more than 10 years of ownership.
• Sale of your own home is tax-free if you lived in it for at least 2 years in a row.
• Rental income - net of expenses, taxed at capital income rates.

Business and the self-employed

• A company pays 20% corporate tax on worldwide income.
• Dividends from a private company are taxed favourably up to 8% of its net asset value; above that they are taxed as earned income on the scale.
• A sole trader splits profit: a part equal to 20% of the business net assets is taxed as capital income, the rest on the earned income scale.
• The entrepreneur's mandatory pension insurance is paid on declared earned income and is the main cost on top of tax.
• Value added tax - registration is required from $23,000 (€20,000) turnover a year; the standard rate is 25.5%, reduced rates 13.5% and 10%.

Dividends: listed and private companies

The Finnish system rewards owners of private companies with real assets: dividends within 8% of the company's net assets are taxed more lightly than salary. Anything above that the tax office treats more like earnings and taxes on the scale.

So owners of Finnish companies usually combine a moderate salary with dividends within the limit, while companies without net assets, such as consultants with a laptop, gain almost nothing. Non-residents pay withholding tax on Finnish dividends, reduced by their country's treaty with Finland.

Inheritance and gifts

• From 2026 inheritances up to $34,000 (€30,000) are tax-free, up from $23,000 (€20,000).
• Gifts up to $8,400 (€7,499) to one person every 3 years are tax-free, up from $5,600 (€4,999).
• For children, spouses and parents rates run from 7% to 19%, for others from 19% to 33%.
• Inheritance is taxed in Finland if the deceased or the heir lived there, and for Finnish property.

Taxes for non-residents

• Pay for work in Finland - 35% withheld at source, with a deduction of about $580 (€510) a month.
• Dividends - 20-35% at source unless a double tax treaty reduces the rate.
• Sale of Finnish property - the gain is taxed at capital income rates, 30-34%.
• Finnish pensions - on the scale or at source, depending on the treaty.

Finnish citizens remain tax resident for 3 years after leaving unless they prove they have cut substantial ties with the country.

A non-resident from a European Economic Area country or a treaty country can ask for Finnish salary to be taxed on the progressive scale with deductions, like a resident, instead of the flat 35%. On a modest salary this is noticeably cheaper, but the choice is made in advance through the non-resident tax card.

Double tax treaties

Finland has treaties with most European Union and Nordic countries, the United States, Canada, Japan and many other states. They reduce withholding tax on dividends, interest and royalties and decide which country taxes pensions and salaries. Without a treaty a national credit applies: tax paid abroad is credited up to the Finnish tax on the same income.

A treaty applies only with confirmed residence. So when moving it is important to get a tax residence certificate from the new country and to tell the Finnish tax office in time that ties have been cut, otherwise both countries will treat you as their resident.

The treaty with Russia has been suspended in full by Finland from 1 July 2026, by decision of the President, after Russia suspended its main articles in 2023. Income between the two countries is now taxed under national law: reduced treaty rates on dividends no longer apply, and pensions from Russia, which Finland previously did not tax, are taxed in Finland from 1 July 2026.

Property: buying and holding

• Transfer tax - 3% when buying a house or land and 1.5% when buying a flat in a housing company or securities.
• Real estate tax - annually at the municipal rate, usually under 1% of the taxable value for housing.
• Purchase restrictions - citizens of Russia and Belarus can buy property in Finland only with a permanent residence permit there, a rule in force since 15 July 2025.
• Other foreigners from outside the European Union need a Ministry of Defence permit to buy land.

From 2024 the transfer tax was cut from 4% and 2% to the current 3% and 1.5%, and the exemption for first-time buyers was abolished. So a first flat is now bought with the same 1.5% tax as a second one, and it should be built into the deal budget together with the agent's fee and bank costs.

What changes in 2026

• State tax brackets were raised by about 3.5%, and the top marginal rate was cut to 52%.
• The earned income deduction rose by $230 (€205) to $3,900 (€3,430), and the child supplement to $120 (€105).
• The reduced 14% value added tax rate fell to 13.5% from 1 January 2026; the standard rate stays at 25.5%.
• The tax-free inheritance threshold rose to $34,000 (€30,000), and tax-free gifts to $8,400 (€7,499) every 3 years.
• Trade union fees no longer reduce tax.

Returns and deadlines

The tax year in Finland is the calendar year, and the tax office does most of the work itself. In spring it sends a pre-filled return with salary, deductions and bank income, and the taxpayer checks and corrects it online by the date shown on the return, usually in May.

• Foreign income, rent and sales of securities and crypto must be added to the pre-filled return by the taxpayer: the tax office does not always see them.
• The tax decision arrives in summer or autumn; overpaid tax is refunded to the account, and residual tax is paid on a schedule, larger amounts in two instalments.
• A company files its corporate tax return within four months of the end of its financial year.
• Value added tax returns are filed monthly, usually by the 12th of the second month after the reporting month.

For late or incomplete information the tax office adds a tax increase and interest. The most common newcomer mistake is leaving out income from the country they moved from: that country's tax office will report it anyway through the automatic exchange of account information.

How to start paying tax when you move

1. Personal identity code. After your residence permit and registering your address you get a Finnish personal identity code from the Digital and Population Data Services Agency.
2. Tax card. It is issued by the Tax Administration, and your employer withholds tax at the rate on it. Without a card 60% is withheld.
3. Prepayment. Entrepreneurs and people with capital income pay in advance on the tax office schedule.
4. Tax return. In spring the tax office sends a pre-completed return for the previous year, which you check and correct online.
5. Leaving. When you move away you report your new residence and proof that ties are cut, otherwise residence continues.

What this means if you are moving

You become a Finnish resident quickly: a permanent home or six months in the country in a row is enough. From then on tax is paid on worldwide income, and leaving residence is harder than entering it, especially for Finnish citizens with their three-year rule.

Those moving on a residence permit or as a founder on a start-up visa should calculate the burden on salary in advance and decide whether to keep income in their own company. For those planning Finnish citizenship, taxes also matter as a condition: naturalisation requires years of lawful residence with income. Buying a home and the transfer tax are covered in buying a flat in Finland, and life in the capital in the Helsinki guide.

Mistakes cost more than the tax: 60% withholding without a tax card, foreign income missing from the pre-filled return and residence that continues after you leave. Murblz specialists calculate the burden before the move, arrange the tax card and prepare the returns.

Who Finnish taxes do not suit

Finland suits a salaried specialist on an average wage: clear rules, a pre-filled return and a tax office that calculates withholding itself. But for some people it is expensive.

• High earners: even after the cut, the top marginal rate including all taxes is about 52%.
• Large passive capital: interest, dividends and gains are taxed at 30-34%, and there is no special regime for new residents.
• Remote workers with foreign income: a resident pays Finnish tax on worldwide income from the first day of residence.
• Owners of companies without assets: favourable dividends are tied to net assets, so a consultant without assets pays almost as on salary.

Such people should compare Finland with its neighbours: Estonia has a flat rate and taxes profit only on distribution, and several southern European countries have special regimes for new residents.

Alternatives to compare

• Estonian taxes - a flat rate and corporate tax only on distribution.
• Norwegian taxes - a comparable burden on salaries and a wealth tax.
• Icelandic taxes - rates from 31.49% to 46.29% with 24% value added tax.

What an investor needs to know about Finnish taxes

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