How is the current year’s total of prepayments calculated?

You can check your prepayment amount in MyTax or on the prepayment decision you received by post. The amount of your total prepayments is based on an estimate of taxable income for the entire year. Taxable income does not include occasional income.

The Tax Administration calculates the prepayment amount based on your latest finalised tax assessment. If you have requested changes to your prepayments during 2020, the prepayments for 2021 are based on this recalculation. 

If you are a new entrepreneur, your prepayment amount will be based on the income estimate you submit in MyTax or in the start-up notification.

We recommend that you keep a close eye on how your income is developing. If it seems that your actual income is lower or higher than the estimate, or if profits for the current year will be different from the previous year, we recommend that you request changes to your prepayments.

Request changes to prepayments in MyTax

See the instructions for using MyTax

What income is subject to prepayments?

What income is subject to prepayments?

Individual taxpayer

Prepayments are collected from income for which no taxes are withheld. Examples of such income include:

  • rental income
  • capital gains from sold assets
  • foreign income, e.g. pensions
Business owners, self-employed
Agricultural taxpayers
  • Taxable profits from business, Taxable profits from agriculture
  • All other income during the tax year after deductions
  • Health insurance contribution and daily allowance contribution are calculated based on the work income under YEL/MYEL.
Shareholders of a partnership or limited partnership
  • Compensation agreed to be paid to the shareholder
  • The shareholder's other income during the tax year, after deductions
Limited-liability companies and cooperative societies
  • 20% of taxable income
Associations and foundations promoting the public good
  • 20% of business income
  • 6.27% of the taxable income derived from real estate or agriculture
Other associations and foundations, not promoting the public good
  • 20% of the entire turnover

YEL and MYEL income as the basis for prepayments

If you are a self-employed person or a farmer, the Tax Administration receives information on your estimated work income, which is the basis for the pension insurance contributions for self-employed persons (YEL work income) or farmers (MYEL work income) and for future pension. The Tax Administration receives this information annually from pension insurance institutions. In the calculation of the health insurance contribution for persons insured under the act on pensions for self-employed persons (YEL) or the act on pensions for farmers (MYEL), YEL or MYEL work income replaces income from business activities. The health insurance contribution is calculated based on your work income and your other earned income that has not been replaced by work income. The daily allowance contribution of health insurance is also collected from self-employed individuals. The daily allowance contribution is calculated based on wage income and work income under YEL/MYEL. If a self-employed person is insured under YEL, the increased daily allowance contribution is collected from their YEL work income. The increased daily allowance contribution is not collected from MYEL work income.

More information on the health care contribution and daily allowance contribution of the health insurance (in finnish and swedish)