Tax system in Finland
Finland splits income in two. Earned income faces progressive state tax from 12.64% plus municipal tax near 7.57%, church and broadcast levies, and pension and insurance contributions. Capital income pays 30% to EUR 30,000 and 34% above.
The 2026 state scale tops at 37.5%, so combined top margins sit near 52% all-in. A work-income credit up to EUR 3,430 softens low and middle pay.
Companies pay a flat 20%, there is no wealth tax, and inheritances and gifts are taxed at 7% to 33% with a EUR 30,000 heir threshold since the 2026 reform.
Tax rates at a glance
- Income tax
- About 13% - 52%Combined
- Wealth tax
- 0%
- Inheritance tax
- 7% - 33%
- Capital gains tax
- 30% / 34%
- Corporate tax
- 20%
- Dividend tax
- 25.5% / 28.9%
- VAT
- 25.5% / 13.5% / 10%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsInvestorsFoundersCross-border groups
Watch out for
- Finland is not low-tax for high salaries. The combined top margin near 52% plus 25.5% VAT makes top earners heavily taxed by any standard.
- Pre-2023 guides mislead badly. The health reform moved funding to state tax, so old 20% municipal figures and old state bands are obsolete.
- Finnish citizens face a three-year exit shadow. Leaving does not end residence for the move year plus three more without proof of cut ties.
- The 18% corporate cut touted in headlines starts in 2027 at the earliest. Price 2026 decisions at 20%.
Frequently asked questions
Is Finland a high-tax country?
For labour income, yes. Combined top margins near 52% with 25.5% VAT sit at Nordic levels, while capital pays 30% or 34% and companies 20%.
Does Finland have a wealth tax?
No. Finland abolished wealth tax in 2006 and has not reintroduced it.
Which taxes matter most in Finland?
The main ones are state and municipal earned-income tax with social charges, 30% or 34% capital tax, 20% corporate tax, 7% to 33% succession tax and 25.5% VAT.