Finland Income Tax Rates for 2018: Individual, Non-Resident, Capital and Corporate Taxes
A guide to Finnish taxation for income earned during calendar year 2018, including state income tax bands, capital income, non-resident wages and corporate profits.
Historical tax year: The figures in the 2018 tables apply to income earned in 2018, not to tax year 2026. Finland generally assesses individual income tax by calendar year rather than an Indian-style April-to-March financial year. For current tax cards and rates, consult the Finnish Tax Administration (Vero).
How Finnish income taxation works
The Finnish Income Tax Act (Tuloverolaki 1535/1992) governs the basic treatment of individual earned income and capital income. Earned income may attract progressive state tax, municipal tax and, where applicable, church tax; health insurance and social insurance charges are separate considerations. The official individual tax guidance explains tax cards, returns and deductions.
2018 state earned-income tax brackets
The table below concerns the state progressive tax component for 2018. It does not represent a person's total tax burden. Tax is calculated as the base tax at the lower threshold plus the marginal rate on income exceeding that threshold.
| Annual taxable earned income (EUR) | Base state tax at lower limit (EUR) | Marginal state tax on excess |
|---|---|---|
| Up to 17,200 | 0 | 0% |
| 17,200 - 25,700 | 8 | 6% |
| 25,700 - 42,400 | 518 | 17.25% |
| 42,400 - 74,200 | 3,398.75 | 21.25% |
| Over 74,200 | 10,156.25 | 31.25% |
The original table contained an apparent typographical error of EUR 800 for the first bracket's base tax; EUR 8 is consistent with the succeeding bracket's base amount. Confirm historical assessments against the official 2018 tax scale.
Municipal tax, church tax and deductions
Municipal income tax was levied separately at rates determined by the municipality. Members of qualifying churches may also owe church tax. Employee pension, unemployment and health insurance contributions depend on their own rules. No single combined 18%-26% rate applies universally. Relevant deductions can include qualifying employment-related expenses and other statutory allowances; eligibility and limits depend on the tax year and circumstances.
Capital income tax in Finland
Under the Income Tax Act, capital income generally includes investment returns, rental income and taxable capital gains, subject to detailed rules and exemptions. The general Finnish capital income tax rates for 2018 were:
| Annual taxable capital income | Rate |
|---|---|
| Up to EUR 30,000 | 30% |
| Portion exceeding EUR 30,000 | 34% |
These are progressive rates for resident taxpayers' taxable capital income, not automatic withholding rates for every payment to a non-resident. Dividend taxation, gains, deductions and treaty relief can require separate analysis. See Vero's tax handbook.
Taxation of non-resident individuals
Residence status affects the scope of Finnish tax liability. Individuals living in Finland or staying for more than six months are generally treated as resident taxpayers, subject to statutory details and tax treaties. Non-residents are generally taxed only on relevant Finnish-source income.
Wage income and source-tax deduction
Under sections 6 and 7 of the Act on the Taxation of Non-residents' Income (627/1978), the standard source-tax rate on many non-resident wages is 35%. Where eligible and recorded on the source-tax card, the employer may deduct EUR 510 per month or EUR 17 per day from the wage amount before calculating the source tax. A qualifying non-resident may request progressive taxation instead. See Vero's guidance on employees from other countries.
Investment income and performers
The general domestic source-tax rate for many types of non-resident capital income is 30%, subject to the nature of the payment, exemptions and applicable tax treaties. The 34% resident capital-income threshold should not be applied automatically to non-resident withholding. Special rules, including a 15% source-tax rate for certain income of non-resident performing artists and athletes, may apply. Refer to Vero's non-resident taxation guidance.
Finland corporate income tax rate in 2018
The standard Finnish corporate income tax rate in 2018 was 20% of taxable corporate profits. This is a tax on taxable profit, not gross turnover. The original page incorrectly labelled this section as France; the rate and discussion here concern Finland. Finnish resident companies are generally subject to Finnish tax on worldwide income, while foreign companies may be liable on Finnish-source income or profits attributable to a Finnish permanent establishment, subject to treaties and applicable law. See Vero's corporate tax guidance.
Practical points for taxpayers
- Identify the correct tax year: the figures on this page relate to 2018.
- Separate state earned-income tax from municipal, church and insurance charges.
- Distinguish earned income from capital income before applying rates.
- For cross-border income, check tax residence, source rules and any applicable double-tax treaty.
- Use official tax cards, return instructions and updated rates for current filing obligations.
Official Finnish tax resources
For the latest administrative guidance, consult Finnish Tax Administration, individual income tax information, business and corporate tax information, and taxation of foreign employees. Official guidance may describe current rules rather than the historical 2018 rules discussed above.
This article provides general information, not individual tax advice. The applicable legislation, tax treaty and tax year govern any actual assessment.