FTA Income Tax Brackets in Finland for 2024

Finland’s General Government Fiscal Plan (2025 - 2028) introduces tax incentives for investors and tax deductions for a green transition. The tax system in Finland is administered by the official tax body, the Finnish Tax Administration (Verohallinto). The tax body makes available detailed instructions for both individuals and businesses in terms of filing processes, differences in approach between the employee and self-employed, foreign businesses, tax prepayments and more. All tax matters may be accessed and processed through MyTax, the tax body’s e-service for taxpayers. 

The Income Tax Act (Tuloverolaki) provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these income tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with Finnish tax laws.

Here you will learn about:

• headline tax rates
• personal income tax (PIT) rates 
• corporate income tax (CIT) rates 
• capital gains tax (CGT) rates 
• withholding tax rates
• value-added tax (VAT) rates

Headline Tax Rates in Finland

Personal Income Tax (PIT) Brackets for Individuals in Finland for 2024

Taxable income for individuals is divided into:

• capital income (income generated by property and assets) such as dividends and capital gains; and
• earned income such as wages and pensions

Capital income is taxed at a fixed rate. Earned income is taxed progressively, that is, the more income is received, the higher the tax rate is. 

Personal Income Tax (PIT) Brackets for Resident Individuals

Personal Income Tax (PIT) Brackets for Non-Resident Individuals

An individual who works occasionally in Finland is regarded as a non-resident and will be taxed on their Finnish-sourced income only at the rate of 35% unless provisions of an applicable tax treaty apply. Alternatively, a non-resident may request to be taxed through tax assessment (that is progressive taxation) instead of a fixed tax at source. In progressive taxation, the non-resident’s worldwide earned income will be taken into account.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Finland for 2024

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Finland

Withholding Tax Rates for Residents and Non-Residents in Finland

In general, withholding tax (WHT) is levied on residents and non-residents in Finland. WHT rates may vary, between 15% to 35%, depending on the type of income concerned. Domestic laws specify that interest paid to a non-resident is usually tax exempt. 

As Finland is a signatory to certain double taxation treaties (DTTs), the WHT rate may vary again and a taxpayer may benefit from the provisions of these treaties.

Value-Added Tax Rates in Finland