Calculation Basis
Tax year 2025 — updated: June 2026
1. State income tax (Valtionvero)
State income tax on earned income is calculated using progressive brackets. Each bracket applies only to the portion of income within that range. The table shows annual income (€/year).
| Income from (€) | Income up to (€) | Tax rate |
|---|---|---|
| 0 | 0 | 0 % |
| 0 | 21 200 | 12,64 % |
| 21 200 | 31 500 | 19,00 % |
| 31 500 | 52 100 | 30,25 % |
| 52 100 | 88 200 | 34,00 % |
| 88 200 | 150 000 | 41,75 % |
| 150 000 | — | 44,25 % |
Source: vero.fi — Income tax table 2025
2. Municipal tax (Kunnallisvero)
Municipal tax is a flat rate set annually by each municipality. The default used here is 7.54%, which corresponds to the Finnish average municipal income tax rate for 2025.
You can check your own municipality's exact rate on the Tax Administration website.
Source: vero.fi — Municipal tax rates and stat.fi — Statistics Finland
3. Pension insurance (TyEL)
Employee contribution depends on age:
| Age | Contribution |
|---|---|
| Under 53 | 7,15 % |
| Age 53–62 | 8,65 % |
| Age 63+ | 7,15 % |
4. Unemployment insurance
Employee contribution: 0.59% of wages in 2025. The contribution is withheld from all earned income.
5. Health insurance (Sairausvakuutus)
Health insurance consists of two parts:
- Medical care contribution (sairaanhoitomaksu): 1.06% — levied on all earned income
- Daily allowance contribution (päivärahamaksu): 0.84% — levied on income above €16 862/year
Combined above threshold: 1.90%. The calculator applies both parts according to income level.
6. Church tax (Kirkollisvero)
Church tax is included in the calculation only when church membership is selected. It applies only to members of the Evangelical Lutheran or Orthodox church. The default rate used is 1.40% (national average for Lutheran parishes, 2025). Actual parish rates range from approximately 1.00–2.00%.
7. Holiday bonus (Lomaraha)
The holiday bonus is typically 50% of one month's gross salary, added to annual income when toggled on. This increases the effective tax rate, as the bonus may push income into a higher bracket. In practice the bonus varies by collective agreement and is not paid in all sectors.
8. Deductions applied in the calculator
The calculator automatically applies the following deductions:
- Earned-income deduction (tulonhankkimisvähennys): €750/year (automatic)
- Basic deduction (perusvähennys): up to €4,115, phasing out when net earned income exceeds €3,600 (phase-out rate 18%)
- Work income deduction (työtulovähennys): up to €3,225, accrues above €2,500 of earned income (accrual rate 11.8%) and phases out above €33,000 (phase-out rate 1.51%)
Disclaimer
The calculator does not account for all possible deductions (e.g. mortgage interest, commuting costs). For the exact figure, use OmaVero at vero.fi.
Sources
Calculation basis is reviewed annually when tax rules change. Last updated: June 2026.