2025/2026 rates -- state tax -- kunnallisvero -- TyELYour salary details
Your take-home pay
Quick salary reference -- 2025/2026
Annual net salary, average municipal tax (20.00%), no church, under 53.
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Understanding your salary in Finland (2025/2026)
Finland's tax system combines a progressive state income tax with a flat municipal tax, plus mandatory social insurance contributions. The Finnish system is notable for its transparency and efficiency -- most taxes are withheld directly by the employer using a personal tax card (verokortti). Finland uses the euro, making salary comparisons with other eurozone countries straightforward.
State progressive income tax -- 6 brackets
Finland levies a progressive state tax on earned income. For 2025, the brackets are: 0% on income up to 20,500 EUR; 12.64% from 20,500 to 30,500 EUR; 17.50% from 30,500 to 50,400 EUR; 21.25% from 50,400 to 88,200 EUR; 31.25% from 88,200 to 150,000 EUR; and 44% above 150,000 EUR. Note that the state tax uses a marginal rate system with fixed amounts at each bracket boundary plus a percentage on the excess.
Municipal tax (kunnallisvero) -- ~18-23%
Each of Finland's municipalities sets its own flat tax rate on earned income. Helsinki has one of the lowest rates at 18.50%, while Espoo is even lower at 18.00%. Larger cities outside the capital region, such as Tampere and Turku, typically charge around 22.00%. Oulu charges 22.25%. The national average is approximately 20.00%. Municipal tax is applied to taxable income after deductions.
TyEL pension contribution
All employees pay a mandatory pension contribution (TyEL -- tyoelakejarjestelma). The rate depends on your age: employees under 53 pay 7.15%, those aged 53-62 pay an increased rate of 8.65%, and employees over 62 return to 7.15%. This pension contribution is deducted from your gross salary before calculating income tax, reducing your taxable income.
Unemployment insurance -- 1.36%
Employees pay 1.36% of their gross salary as unemployment insurance premium (tyottomyysvakuutusmaksu). Like the pension contribution, this is deducted before income tax calculation. Combined with TyEL and health insurance, total employee social contributions are approximately 10.5% of gross salary.
Health insurance -- ~1.96%
Employee health insurance (sairausvakuutusmaksu) consists of a medical care contribution of approximately 0.60% and a daily allowance contribution of approximately 1.36% (if income exceeds a threshold). The total is approximately 1.96% of taxable income. This funds Finland's public healthcare system.
Earned income deduction and basic deduction
Finland provides two key deductions that reduce the municipal tax burden. The earned income deduction (ansiotulovahennys) is calculated as a percentage of earned income above a threshold, capped at approximately 3,570 EUR and phased out at higher incomes. The basic deduction (perusvahennys) provides up to approximately 3,500 EUR reduction for lower incomes and phases out as income rises. These deductions only reduce municipal tax, not state tax.
Employer contributions -- ~20%
Finnish employers pay approximately 20% on top of gross salary in social contributions, covering the employer's share of TyEL pension (~17%), unemployment insurance (~0.5-2%), health insurance (~1.5%), accident insurance, and group life insurance. This makes the total employer cost approximately 120% of the gross salary.