Tax changes in Finland in 2024
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Important tax changes in Finland in 2026
Taxes are the most important source of government revenue. According Government proposal supplementing the 2024 budget proposal from 09.10.2023, the State budget revenue for 2024 is estimated at EUR 76,3 billion, of which tax revenue will account for EUR 66,8 billion. Tax revenues are estimated to grow by approximately 3,6 % (2.3 billion euros) compared to the budgeted for 2023.
Taxation of earned income (salary and pension)
Ansiotulojen verotus
In general, the wage earner's tax rates will lighten in 2024 (taking into account taxes and tax-related payments). The primary factor is the reduction of tax-resembling social insurance contributions and the increase of the solidarity tax (in Finnish, solidaarisuusvero) threshold on high income levels. The tax rates for employees will decrease by 0.5–1.2 percentage points, depending on the income level.
In 2024, pension taxation will be affected not only by the tax index adjustment, changes to the medical care contribution, and alterations in the solidarity tax threshold but also by pension index increases, which for the second-year running are distinctly greater than the rise in wages. The earnings-related pension index to be increased by 5.7% and National Pensions Index in-turn by 5.9% for 2024.
The failure to adjust the pension index started to become a real problem. The increase in pension index tightens the additional tax on pension income, as income threshold remains unchanged from year to year. The rate of additional tax on pension income is 5.85 % (which is the same as in 2023) of the annual pension income that exceeds the threshold of 47,000 euros (€3,917/month). At the same time, the tax extends to a wider group, as more people climb over the fixed income limit due to the rise in pension.
However, the changes in the threshold for the solidarity tax will reduce tax burden at the very highest pension levels. High-income earners will experience a lighter tax load as the temporary two-percentage-point additional tax, known as the solidarity tax, will only apply to incomes above 150,000 euros in 2024, up from the previous level of 85,800 euros in 2023.
The overall level of social insurance contributions expects to decrease in 2024, particularly as unemployment insurance contribution foresee a reduction. Health insurance contributions will also decline. The earnings-related pension insurance contribution will remain unchanged.
The municipal tax rate will change in all 293 mainland Finland municipalities.
IN DETAIL: Estimation of the changes in payroll taxation, 2023-2024
| Salary 2023, euros / month |
Annual income 2023, euros |
Tax rate 2023,% |
Tax rate 2024,% |
Change in tax rate, % - points |
Easing (-)/Increasing (+) EUR / year |
| 1 600 |
20 000 |
13,5 % |
12,9 % |
-0,6 % |
-120 |
| 2 000 |
25 000 |
18,1 % |
17,2 % |
-0,9 % |
-230 |
| 2 400 |
30 000 |
21,8 % |
21,1 % |
-0,7 % |
-210 |
| 2 800 |
35 000 |
24,5 % |
23,8 % |
-0,7 % |
-250 |
| 3 200 |
40 000 |
27,2 % |
26,7 % |
-0,5 % |
-200 |
| 3 600 |
45 000 |
29,7 % |
29,1 % |
-0,6 % |
-270 |
| 3 821 Roughly equivalent to an average salary |
47 763 |
30,8 % |
30,3 % |
-0,5 % |
-250 |
| 4 000 |
50 000 |
31,6 % |
31,1 % |
-0,5 % |
-250 |
| 4 400 |
55 000 |
33,3 % |
32,7 % |
-0,6 % |
-330 |
| 4 800 |
60 000 |
34,8 % |
34,3 % |
-0,5 % |
-300 |
| 5 200 |
65 000 |
36,2 % |
35,7 % |
-0,5 % |
-330 |
| 5 600 |
70 000 |
37,4 % |
36,9 % |
-0,5 % |
-350 |
| 6 000 |
75 000 |
38,4 % |
37,9 % |
-0,5 % |
-380 |
| 6 400 |
80 000 |
39,2 % |
38,7 % |
-0,5 % |
-400 |
| 6 800 |
85 000 |
40,0 % |
39,5 % |
-0,5 % |
-430 |
| 7 200 |
90 000 |
40,7 % |
40,1 % |
-0,6 % |
-540 |
| 7 600 |
95 000 |
41,3 % |
40,7 % |
-0,6 % |
-570 |
| 8 000 |
100 000 |
42,1 % |
41,5 % |
-0,6 % |
-600 |
| 8 400 |
105 000 |
42,9 % |
42,2 % |
-0,7 % |
-740 |
| 8 800 |
110 000 |
43,6 % |
42,9 % |
-0,7 % |
-770 |
| 9 200 |
115 000 |
44,3 % |
43,5 % |
-0,8 % |
-920 |
| 9 600 |
120 000 |
44,9 % |
44,1 % |
-0,8 % |
-960 |
| 10 000 |
125 000 |
45,5 % |
44,6 % |
-0,9 % |
-1130 |
| 11 000 |
137 500 |
46,7 % |
45,7 % |
-1,0 % |
-1380 |
| 12 000 |
150 000 |
47,8 % |
46,6 % |
-1,2 % |
-1800 |
| 13 000 |
162 500 |
48,6 % |
47,5 % |
-1,1 % |
-1790 |
| 14 000 |
175 000 |
49,3 % |
48,2 % |
-1,1 % |
-1930 |
| 15 000 |
187 500 |
49,9 % |
48,8 % |
-1,1 % |
-2060 |
IN DETAIL: Estimation of the changes in Pension taxation, 2023-2024
| Pension 2023, euros / month |
Annual income 2023, euros |
Tax rate 2023,% |
Tax rate 2024,% |
Change in tax rate, % - points |
Easing (-)/Increasing (+) EUR / year |
| 1 400 |
16 800 |
10,0 % |
10,2 % |
0,2 % |
+30 |
| 1 600 |
19 200 |
14,1 % |
14,4 % |
0,3 % |
+60 |
| 1 800 |
21 600 |
17,3 % |
17,2 % |
-0,1 % |
-20 |
| 2 000 |
24 000 |
19,0 % |
18,6 % |
-0,4 % |
-100 |
| 2 250 |
27 000 |
21,2 % |
20,8 % |
-0,4 % |
-110 |
| 2 500 |
30 000 |
22,7 % |
22,4 % |
-0,3 % |
-90 |
| 2 750 |
33 000 |
24,0 % |
23,8 % |
-0,2 % |
-70 |
| 3 000 |
36 000 |
25,9 % |
25,7 % |
-0,2 % |
-70 |
| 3 500 |
42 000 |
28,8 % |
28,7 % |
-0,1 % |
-40 |
| 4 000 |
48 000 |
31,2 % |
31,3 % |
0,1 % |
+50 |
| 4 500 |
54 000 |
33,4 % |
34,0 % |
0,6 % |
+320 |
| 5 000 |
60 000 |
35,1 % |
35,6 % |
0,5 % |
+300 |
| 6 000 |
72 000 |
37,6 % |
38,1 % |
0,5 % |
+360 |
Tax deduction for commuting expenses. Daily trips between home and work
Työmatkavähennys
The deduction for commuting expense will decrease in 2024 as its threshold is raised from €750 to €900. The maximum amount of the deduction will stand at €7,000 (compared to €8,400 in 2023).
Work-income tax credit for people over 60
60+ työtulovähennys
The increase in the amount of work income tax credit for those who have reached the age of 60, introduced in 2023, will be readjusted. For those who individuals aged 65 or older, the increase of the maximum amount is doubled from €600 to €1,200. However, the increase will be discontinued for individuals to those aged 60–64.
The increase in the work-income tax credit based on wage and self-employment income for 2023 was:
- 200 euros per year for those aged 60–61,
- 400 euros per year for those aged 62–64 and
- 600 euros per year for those aged 65 and over.
Transfer tax
Varainsiirtovero
The property transfer tax rate on real estate decreases from 4% to 3%.
The transfer tax rate on shares in housing cooperatives and real estate companies drops from 2% to 1.5%.
The transfer tax on other types of securities decreases from the current 1.6% to 1.5%.
The tax exemption for first-time homebuyers is abolished from the beginning of 2024. Individuals who made their first housing purchase in 2023 will continue to be exempt from the property transfer tax.
The law has come into effect from January 1st, 2024. However, tax percentages changes to be applied retroactively from October 12th, 2023 onwards. The Tax Administration will refund overpaid transfer tax with interest to those clients who conducted transactions during the end of the year 2023 and pay the tax in accordance with current regulations. Refunds will be paid out in early 2024. The signing date of the sales agreement determines the transfer tax rate and eligibility for tax exemption.
Real estate tax. General property tax rates for land and buildings
Kiinteistövero
From the year 2024 onwards, municipalities will determine the general property tax rates separately for land and buildings.
The lower limit for the general property tax rate applied to land will rise from 0.93% to 1.30%, while the lower limit for the general property tax rate on buildings will remain at 0.93%. The tax rate on land will become more stringent in all 245 municipalities where the rate has been below 1.30% in 2023. Municipalities also have the option to increase their tax percentage based on their own decisions. The upper limit remains at 2.00% for both tax rates for land and buildings.
Tax credit for household expenses
Kotitalousvähennys
The temporary increase of the tax credit for household expenses related to household work, nursing and care, and to the replacement of oil heating is extended to the year 2024.For these types of work, the cap on the tax deduction stands at €3,500. Additionally, the scope of the tax credit is expanded to include physical and occupational therapy performed at home.
Tax credit for electricity is discontinued. The temporary tax credit for electricity expenses cannot be claimed in the tax assessment of the year 2024.
Excise duty on certain fuels. Tax rates on liquid fuels
Polttoaineverot
The excise duty on transport fuels is being reduced from the beginning of 2024. The reduction in tax levels will lead to a decrease in excise tax revenues by just under 170 million euros.
The reduction is estimated to decrease the tax on a liter of gasoline by approximately 4.4 cents and on a liter of diesel by about 4.9 cents. These amounts reflect the adjustment in the value-added tax.
Excise duty on tobacco. Nicotine pouches
Nikotiinipussien tupakkavero
From 1 January 2024, nicotine pouches are included in the scope of tobacco taxation. The proposed tax impact per can of nicotine pouches is about +2.5 euros, taking into account value-added tax, based on the current consumer prices of nicotine pouches.
However, there is more uncertainty than usual associated with the tax's adoption because it is possible that the tax may reduce the margins of the taxable products. Before the implementation of the excise duty, nicotine pouches sold in Finland are taxed solely with the value-added tax.
Excise duty on alcohol
Alkoholivero
The alcohol taxation will be adjusted by raising the excise duty on wines and spirits, and lowering the excise duty on beer.
For instance, the taxes on a 75 cl bottle of wine would increase by about 0.33 euros, and the taxes on a 50cl bottle of spirits would go up by just over 1 euro. On the other hand, the taxes on a 33 cl can of beer would decrease by about 3 cents. The figures include the change in value-added tax.
On average, the taxes applied to alcoholic drinks, known as excise duties, are set to rise by approximately 2%.
Inheritance tax payment period
Perintöveron maksuaika
The payment period for the inheritance tax is extended from 2 to 10 years. The change concerns inheritance taxes with a first due date on January 1, 2024 or later. The interest rate for late payments on inheritance tax stands at 7.5% in the year 2024.
Equity savings account
Osakesäästötili
The maximum deposit amount to the equity savings account is increased from 50,000 euros to 100,000 euros.
Tax at source on the income. Foreign key employees
Ulkomaisten erityisasiantuntijoiden lähdevero
Foreign individuals who arrive to Finland and stay for more than six months, and who are recognized as resident taxpayers, may be treated in particular situations as foreign key employees. Such individuals are subject to a 32% tax at source on their earned income, rather than the regular tax rates. As of January 1, 2024, the maximum period of work allowed by the Act on Key Employees is extended from 48 months to 84 months.
Fairway dues
Väylämaksu
The halving of fairway dues will continue. The fairway fee must be paid when the vessel arrives in Finland’s territorial waters from abroad or when the vessel arrives from one port located in Finland to another Finnish port.
Kilometre and per diem allowances
Päivärahat ja kilometrikorvaukset
The Tax Administration has confirmed the amount of the tax-exempt domestic full per diem allowance to be 51 euros for the year 2024 (48 euros in 2023), the partial per diem allowance to be 24 euros (22 euros in 2023), and the meal compensation to be 12.75 euros (12 euros in 2023).
The tax-exempt kilometre allowance is set at 57 cents per kilometer (53 cents in 2023).
Social insurance contributions
Sosiaalivakuutusmaksut
Changes to social insurance contributions: Vero.fi
