Finland Tax Changes 2027: What the Budget Bills Mean for Your Pay
A bigger earned income tax credit, brackets indexed by 3.2% and a lower unemployment contribution. The 2027 figures come from government bills that Parliament is expected to pass in December.
Headline change
Maximum earned income tax credit, 2027 (draft)
Finland 2026 vs 2027: key tax parameters
| Parameter | 2026 | 2027 | Status |
|---|---|---|---|
| State tax thresholds (rates 12.64%–37.5% unchanged) | €22,000 / €32,600 / €40,100 / €52,100 | €22,700 / €33,600 / €41,400 / €53,800 | Draft |
| Earned income tax credit, max | €3,430 | €3,660 | Draft |
| Credit phase-out range (2% of net earned income) | €35,000–50,550 | €38,000–58,250 | Draft |
| Perusvähennys (basic deduction), max | €4,265 | €4,400 | Draft |
| Unemployment insurance, employee | 0.89% | 0.74% | Draft |
| TyEL pension, employee | 7.30% | 7.30% | Announced |
| Health insurance daily-allowance contribution | 0.88% | Set in late November | Pending |
| Medical care contribution | 1.10% | Set in late November | Pending |
| Average municipal tax | 7.57% | Late November / December | Pending |
| Yrittäjävähennys (entrepreneur deduction) | 5% | 5.5% | Draft |
| YEL pension, self-employed | 24.4% | 24.4% | Announced |
| Unemployment insurance, employer | 0.31%; 1.23% above €2,509,500 payroll | 0.26%; 1.04% above €2,568,000 | Draft |
| Corporate income tax | 20% | 18% | Draft |
| Capital income tax | 30%; 34% above €30,000 | 30%; 34% above €30,000 | No change proposed |
Bills: HE 174/2026 (income tax), HE 187/2026 (unemployment insurance), HE 151/2026 (corporate tax). TyEL and YEL rates are the pension negotiators' proposal of 6 October 2026; the decree follows in November.
Government estimate: tax change at the same salary
| Gross salary / year | Income tax in 2027 vs 2026 |
|---|---|
| €20,000 | −€96 |
| €30,000 | −€321 |
| €40,000 | −€448 |
| €50,000 | −€485 |
| €60,000 | −€402 |
| €80,000–100,000 | about −€405 to −€410 |
Source: HE 174/2026. Same nominal salary, 2026 contribution rates and average 2026 municipal and church tax rates; the lower unemployment contribution is not included.
Take-home pay: 2026 vs 2027 at €55,000
Single employee, same gross salary in both years
TaxRavens calculation: no children, no church tax, standard €750 deduction for income-related expenses. 2027 uses the draft scale, credit and unemployment rate; municipal tax and health insurance rates stay at 2026 levels until they are published.
Employees
Low and middle earners gain most
The bigger credit and its later phase-out matter most between €30,000 and €60,000. Indexing the brackets by 3.2% keeps a pay rise of that size from pushing you into a higher rate. The lower unemployment contribution saves €0.15 per €100 of gross pay (€82.50 a year at €55,000).
Startup staff: tax on option benefits in unlisted companies can be deferred until the shares are sold, under conditions (draft).
Finland has no statutory minimum wage; pay floors come from collective agreements.
Self-employed and company owners
Entrepreneur deduction 5% → 5.5%
Sole traders (toiminimi), partnerships and farmers deduct 5.5% of business income instead of 5% (draft). The YEL pension contribution stays at 24.4% (announced). The work credit also applies to the earned-income share of business income, so the €3,660 maximum helps entrepreneurs too.
Running an Oy: corporate tax falls from 20% to 18% and losses can be carried forward for 25 years instead of 10 (draft, HE 151/2026).
Expats and relocants
No new expat regime in 2027
The key-employee source tax of 25% (down from 32% since 1 January 2026) continues: up to 84 months, for cash pay of at least €5,800 a month. We found no 2027 change to it. Everyone else is taxed progressively and gets the general cuts above.
What is still pending
FAQ
When will Finland's 2027 tax rates be final?
Parliament is expected to pass the tax bills with the budget in mid to late December 2026. Contribution rates are set by decree in November, and the 2027 municipal tax rates appear in late November.
How much more net pay will I get in Finland in 2027?
At the same salary, the government estimates €321 less income tax at €30,000, €448 at €40,000 and €485 at €50,000. On €55,000 our calculation, including the lower unemployment contribution, gives about €460 more a year (draft).
What changes for sole traders in Finland in 2027?
The entrepreneur deduction rises from 5% to 5.5% of business income (draft), the YEL contribution stays at 24.4%, and the higher work credit applies to the earned-income share of business income.
Is there a new expat tax regime in Finland in 2027?
No. The key-employee regime (25% source tax for up to 84 months, at least €5,800 a month in cash pay) has applied since 1 January 2026, and no 2027 change was found.
