Tax
Worldwide income, progressive state and municipal tax, and 25.5% VAT
Residents are taxed on worldwide income through progressive state tax and flat municipal tax, administered by the Tax Administration (Vero). Standard VAT rose to 25.5% in 2024.
Key rules
- Income tax combines a progressive state scale with a municipal rate set by each municipality.
- Standard VAT is 25.5% following the 2024 increase.
- Capital income is taxed separately at 30% / 34%.
Governing law
- Income Tax Act (Tuloverolaki)
- Value Added Tax Act (Arvonlisäverolaki)
Penalties and consequences
- Late-payment interest and tax increases; criminal liability for evasion
In practice
Finland separates earned income from capital income, so investment returns are taxed on a distinct flat schedule rather than the progressive scale.