Side income taxation 2026 — how much tax do you pay?

In Finland, side income is taxed on top of main income — not as a separate income source. This means side income is taxed immediately at the marginal tax rate already applicable to your main income. If your main income already puts you in a high state tax bracket, every euro of side income is taxed at that high rate from the first euro.

Side income can be freelance fees, rental income, fees, commission, or any other earned income. All earned income is combined for tax purposes.

Side income is taxed at the marginal rate

The marginal tax rate is the percentage you pay on the next euro you earn. It is not the same as your effective (average) tax rate — the marginal rate is always higher.

The key principle: side income is stacked on top of main income. If your main income already places you in the 30.25% state tax bracket, side income is immediately taxed at municipal tax + 30.25% + statutory contributions. There is no fresh personal basic deduction or lower bracket rates for side income.

This makes the real net return on side income often lower than the gross figure suggests at first glance.

Marginal tax rates 2026

The table below shows typical marginal tax rates at various annual income levels in Helsinki (municipal tax 5.30%) and Tampere (municipal tax 7.60%). State tax brackets in 2026: 0–€22,000 = 12.64%, €22,001–32,600 = 19%, €32,601–40,100 = 30.25%, €40,101–52,100 = 33.25%, €52,101+ = 37.50%.

Marginal rates include state tax, municipal tax, and statutory contributions (TyEL, unemployment insurance, health insurance). Figures are estimates — exact rate depends on personal deductions.

Example: €3,000/month salary + €500 side income

A concrete example: an employee earning €3,000/month (€36,000/year) living in Helsinki also receives €500/month in freelance fees.

The annual main income of €36,000 sits in the 30.25% state tax bracket (€32,601–40,100). The side income of €500/month = €6,000/year is added on top — all €6,000 is taxed at the marginal rate.

For a Tampere resident the situation is even tighter: marginal rate approximately 44%, leaving around €280/month from the same €500 side income.

In other words: roughly half of side income goes to taxes when main income is already at the €3,000/month level. This is an important factor when evaluating whether to take on side work.

Tax card for side income

Side income requires a separate tax card or an increase in the main card's percentage. Without a tax card, the side income payer — for example, a client — is required to withhold 60%automatically (the default rate when no card is presented). This is excessively high and leads to large spring refunds.

Two options for handling side income withholding:

• Tax card B (side income card) — request a separate card from OmaVero for your side income payer. The rate is calculated based on your marginal tax rate.
• Increase the main card rate — you can request that your main tax card percentage be raised to cover side income as well. Works well when side income is regular and predictable.

Remember: if you have side income from multiple sources, always verify that the correct percentage is applied to each. Back-tax debt accumulates quickly otherwise.

Calculate your side income taxes

You can estimate the net value of side income using the calculator. Enter main salary + side income as a combined figure and see the total net salary and effective tax rate.