Taxation

In Finland you must pay taxes from your salary. The employer withholds the taxes automatically from your salary. For this you need a tax card, it can be applied for at the local tax office or if you have a bank account and bank authentication as well online.

The percentage of your tax depends on your income. In Finland, taxation is progressive. This means that the tax rate (the share of taxes) is larger for a larger salary than for a smaller salary. For the tax card, you need to estimate the amount of income you will receive during the whole year. You also need to have a Finnish personal identity code. If you do not show the tax card to your employer, they will deduct 60% of your salary as taxes, the same applies if you have stated a too low annual income and did not apply for a second tax card. If you pay too much tax, you will receive a tax refund (veronpalautus). If you pay too little tax, you will have to pay back tax (jäännösvero). In addition to taxes, your employer will withhold insurance payments from your salary for unemployment and sickness, for example.

Read more about taxation for students.