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% starting from 2026. 

The tax-at-source tax for foreign key employees has been reduced to 25% from 32%. 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 realised in the year the transfer agreement is executed.

Inheritance and gift taxation 

The minimum taxable amount in inheritance taxation was increased from EUR 20,000 to EUR 30,000 in 2026. The minimum taxable amount in gift taxation during a period of rolling three years was increased from EUR 5,000 to EUR 7,500. 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.