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  • State Taxation

State Taxation 2021

Finnish state income tax scale 2021

The taxation to be executed in 2021 decrees the income tax paid to the state on earned income on the basis of the Income Tax Act (1535/1992) in accordance with a progressive income tax scale as follows:

Taxable earned income, €

Tax at the lower limit, €

Tax on the share of income exceeding the lower limit, %

18 600



27 900



45 900

3 671


80 500

11 023,50



Municipal and church tax rate

In 2021, municipal tax rates will vary between 17% and 23.50%. Correspondingly, the church tax rates will vary between 1.00% and 2.20%.

The Tax Administration's list on the income tax percentages of the congregations of municipalities, the Evangelical-Lutheran church, and the Orthodox Church for the fiscal year 2021 can be found at


Capital gains tax rate

30% of income tax will be paid for income from capital (capital income tax rate). For the share of the taxpayer's taxable income from capital exceeding EUR 30,000, a tax of 34% will be paid for the capital income (raised income rate of capital gains).


Community income tax rate

The income tax rate of communities is 20%. The act on tax payments decrees on the distribution of community and common interest tax between fisci.


Base interest rate

The Ministry of Finance has confirmed the base interest rate as -0.50% from 1 January 2021 to 30 June 2021. The base interest rate has been -0.25% from 1 January 2020.


Reference rate

The reference rate is reported by the Bank of Finland. The reference rate confirmed for the end of the previous year is always applied to taxation, which means that the reference rate reported in June 2020 will be applied to taxation from 1 January 2021 to 31 December 2021. The reference rate reported by the Bank of Finland from 1 July to 31 December 2020 is 0.0%.

Return interests

The return interest is the aforementioned reference rate reduced by two percentage points. However, the return interest is always a minimum of 0.5% as of 1 January 2010. Therefore, the return interest of 2021 will be 0.5% Interest on refunds is non-taxable income.


Public broadcasting tax

Public broadcasting tax is decreed annually for individuals (individual's public broadcasting tax) or communities (community's public broadcasting tax) in connection with other income taxation.

The public broadcasting tax applies to all who have turned 18 by the end of the year in question. The amount of the tax is 2.5% of the annual income exceeding EUR 14.000, but no more than EUR 163. The Tax Administration collects the public broadcasting tax in connection with other advance collection.

The public broadcasting tax of businesses is EUR 140 if the taxable income of the business exceeds EUR 50,000. For the share exceeding the limit, 0.35% a year will be collected so that the amount of tax is a maximum of EUR 3,000 a year. A community can deduct the public broadcasting tax in their taxation.