Finland has a progressive income tax system — the more you earn, the higher the percentage you pay. For immigrants starting work, understanding the tax card system is critical. Without a tax card, your employer withholds 60% of your salary in tax, regardless of your actual income. Getting the card takes 10 minutes and is free.
The Tax Card (Verokortti)
The tax card (verokortti) tells your employer what tax rate to apply to your salary. Get it at vero.fi using your Finnish eID (after getting your henkilotunnus). Your rate is calculated based on your estimated annual income. A student earning 800 euros per month might have a tax rate of 10-15%. A professional earning 3000 euros per month might be at 25-35%.
Municipal vs State Tax
Finnish income tax has two components: municipal tax (kunnallisvero), which varies by city and is typically 18-23%, and state tax (valtion tulovero), which applies progressively on incomes above approximately 20,000 euros per year.
Annual Tax Return
In March or April each year, Vero sends you a pre-filled tax return (veroilmoitus) based on information from your employer, bank, and Kela. You review it and submit any corrections. Most people in straightforward employment situations have nothing to add or correct.
Tax Refund
If too much tax was withheld during the year (common in your first year when your estimated income was higher than actual), you receive a refund automatically in August or September. Refunds can range from 50 to several hundred euros.
Get your tax card on the same day you get your henkilotunnus. Do not wait until you start a job — the 60% withholding rate will apply to your first payslip if you delay.
