How we calculate Finnish net pay

The calculator follows the Tax Administration's decision on how withholding rates for wage income are calculated, for 2025 and 2026. The state income tax scale comes from the 2025 Income Tax Scale Act and the Tax Administration's page for 2026, municipal and parish rates from the Tax Administration's decisions — see data sources.

The tax rate

The Tax Administration sets the withholding rate so that withholding matches the year's taxes and contributions as closely as possible. The rate is their share of annual income, rounded up to the next half point, at most 60. Annual income is the monthly salary times the number of pay months: 12, or 12.5 with a holiday bonus. A €4,000 monthly salary in Helsinki, for example, gives a rate of 18.0%.

Deductions

A €750 deduction for income-related expenses comes off pay first, leaving net earned income. The pension, unemployment and daily allowance contributions are deducted from that, and the basic deduction last: €4,265, reduced by 18% of income above that amount (€4,115 in 2025). The basic deduction applies in both state and municipal taxation, so taxable income is the same in both.

Taxes

State income tax follows the scale: 12.64% from €0, 19.00% from €22,000, 30.25% from €32,600, 33.25% from €40,100, 37.50% from €52,100. Municipal and church tax are the rates of your municipality and parish applied to taxable income. The health care contribution is 1.10% of taxable income (1.06% in 2025) and the daily allowance contribution 0.88% of pay when annual income is at least €17,255. The Yle tax is 2.5% of net earned income above €15,150, at most €160.

The earned income credit

The earned income credit is 18% of pay, at most €3,430, plus €105 for each child under 18 (double for single parents). It falls by 2.00% of net earned income above €35,000, up to €50,550. In 2025 the maximum was €3,225 and the credit fell by 2.22% of income above €24,250 and 3.44% above €42,550. The credit comes off state tax first; any remainder reduces municipal tax, church tax and the health care contribution in proportion.

Contributions taken from pay

Besides tax, the employer deducts the pension contribution of 7.30% (7.15% in 2025, 8.65% for ages 53–62) and, for ages 18–64, the unemployment insurance contribution of 0.89% (0.59% in 2025). They are not part of the tax rate but are deductible in taxation.

Tests

Not yet included

• Åland municipalities (own scale, deductions and media fee).
• The additional rate and income limit, tax cards for second jobs.
• Travel costs, household deduction, fringe benefits, capital income and pensions.
• Employer social costs.

Estimates only. Not tax, legal or financial advice.