Finland

Highlights from 2026 tax legislation changes

Tax reductions for earned income and pension income 

The highest marginal tax rates on earned income taxation have been reduced to around 52 percent starting from 2026. 

The Tax-at-source tax for foreign key employees have been reduced to 25 percent from 32 percent. The same rule of law is also applied to Finnish nationals returning to Finland.   

The additional tax rate assessed on pension income was reduced from 5.85% to 4%. The income threshold beyond which the additional pension income tax must be paid was increased from 47,000 to 57,000 euros (EUR).

Tax year for additional purchase price (earn out)

Capital gains from a conditional additional purchase price/earn out will be taxed in the year when the obligation to pay and the amount are confirmed. This provides clarity on which year's income the additional purchase price will be taxed for the taxpayer. The act also includes provisions for adjusting capital losses and specifies that capital gains are realized in the year the transfer agreement is executed.  

Inheritance and gift taxation 

The minimum taxable amount in inheritance taxation was increased from 20,000 euros to 30,000 euros in 2026. The minimum taxable amount in gift taxation during a period of rolling three years was increased from 5,000 euros to 7,500 euros. The value of ordinary household goods exempt from inheritance and gift tax is EUR 7,500 (previously EUR 4,000).

Use of Tax Administration’s MyTax service

From 2026 tax decisions and other official tax documents will be delivered through the Tax Administration's electronic service, MyTax, whenever the taxpayer has utilised this service.