Income and deductions used in the calculation of tax rates and tax prepayments for 2024
Some calculation bases for tax rates and prepayments vary from year to year, whereas others are more stable. You can see the bases in your prepayment decision, which you may receive with your tax card, for example. On this page, we have collected calculation bases for income taxation.
The Tax Administration calculates the tax rate for your tax card and the prepayment amount based on the income and deductions in your latest finalised tax assessment. If you requested a change to your tax rate or tax prepayment last year, your this year’s tax card and prepayment calculation are based on the revised data. Occasional income is not included in the taxable income.
As a rule, capital income of less than €7,000 is taken into account in your tax card’s tax rate. Because of this, your tax rate may be higher. In that case, you will not receive a separate bank transfer for rental income, for example.
To finance the wellbeing services counties, tax revenue is steered from municipalities to the State starting 2023. This does not concern the Åland Islands.
Tax bases for earned income in 2024
- State income tax schedule 2024 (available in Finnish and Swedish, link to Finnish)
- Income tax rates of municipalities and parishes in 2024 (available in Finnish and Swedish, link to Finnish)
- Municipal income tax rate for non-residents (taxpayers living permanently abroad) 7.50%
- Health care contribution
- on wage and work income 0.51%
- on pensions, benefits and other income 1.48%
- Daily allowance contribution (for 16- to 67-year-olds)
- 0,00% for wage earners whose annual income is less than €16,499
- 1,01% for wage earners whose annual income is €16,499 or more
- 1,23% for self-employed individuals whose annual income is €16,499 or more
- 0,22% for self-employed individuals whose annual income is less than €16,499
- Additional tax on pension income 5.85% on the part of pension exceeding €47,000
- Public Broadcasting Tax 50% on income (capital and earned income) exceeding €14,000
- Åland Islands media fee €123 if income (capital and earned income in total) exceeds €14,000
The tax card and prepayment calculation takes into account, for example, the following deductions:
- Deduction for the production of income €750 but not more than the amount of wage income
- Earned income deduction from wage income and business income, no more than €3,570
- Credit for work income from wage income and business income, no more than €2,140 except:
- If the wage earner or self-employed business operator has reached 65 years before January 2024, max. credit is €3,340
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the credit is 12% of the income entitling you to this credit
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the deduction is reduced by 2.03% of the amount of net taxable income exceeding the 23,420-euro threshold, and reduced by 1.21% of the amount of net taxable income exceeding the 71,900-euro threshold.
- Deduction for travel expenses, no more than €7,000 for the part exceeding the €900 credit threshold. The credit threshold of unemployed persons and persons on certain family leaves is decreased by €80 for each full month of benefit. However, the threshold is always at least €160.
- Interest on a loan relating to production of income.
- Trade union fees and payments to unemployment funds
- Deductible voluntary pension insurance contributions
- Deduction based on the employee’s pension insurance contribution (7.15% or 8.65%) and unemployment insurance contribution (0.79%) (employer withholds the contribution from net wages and the corresponding amount is deducted in taxation)
- Maximum basic deduction €3,980
- Further information on deductions
Tax rates for capital income
- 30% if capital income is no more than €30,000
- 34% on the part of capital income exceeding €30,000