Automatically granted deductions

Some deductions are included in the tax assessment computations that the Tax Administration performs, so you do not have to claim them when you file your tax return.

The following descriptions of deductions sometimes refer to net taxable earned income: what that means is the sum of all your income in the earned-income category, minus any expenses for the production of income.  Such expenses may consist of commuting expenses (i.e. daily travelling from home to work), trade-union fee expenses, membership dues etc. Earned income consists of pay from employment (i.e. wage income), pensions and taxable social benefits.

Tax Return on the Web (tax.fi/taxreturn) is closed.

You can no longer submit details for 2017 online. Please file the details on your pre-completed tax return form and attachment forms, if necessary. Send the forms to the tax office by post.

Child tax credit

Child tax credit will not be valid in 2018.

More information on this tax credit (in Finnish and Swedish).

Standard deduction for the production of income - €750 (year 2018)

If you are a wage earner, you get a 750-euro deduction automatically for your expenses for the production of income. If your wage income is less than €750 (year 2017) for the entire year, you get a deduction that equals its total amount.  If you actually pay more than €750 in expenses for the production of your income, you must claim them on your tax return. This deduction concerns both state and municipal income tax, and is deducted from your wage income.

Standard earned-income deduction – maximum amount €3,570

You may get this deduction if you have taxable wage income, other types of earned income that you have received as compensation for work you have done for someone, or the type of income that consists of profit-sharing when being partner in a business partnership.  However, if the income you have earned is pension income or social benefit income, you cannot get this deduction.

It is computed in municipal taxation, using your net taxable earned income as the base, according to the following formula: 51 percent is deductible of the base income that goes above €2,500 up to €7,230. For amounts above €7,230 the deduction rate changes to 28 percent. However, the maximum deduction is €3,570.

If your net taxable earned income is higher than €14,000, the deduction is reduced by 4.5% of the excess that goes over €14,000. For purposes of calculating the reduced deduction, all earned income is included in the total: this means that pension income, unemployment benefits and sickness allowance are included. If the total of your net taxable earned income reaches €93,333, you do not get this deduction at all.

More information on the standard earned-income deduction (in Finnish and Swedish).

Standard tax credit for work income - maximum amount €1,540 in 2018

You may get this credit if you have taxable wage income, other types of earned income that you have received as compensation for work you have done for someone, or income consisting of profit-sharing if you are a shareholder in a business partnership.

It is directly deducted from the state income tax you must pay. If you have too little income tax to deduct from, the credit is applied to your municipal income tax, to your Church tax, and to your health insurance contribution.

It is computed according to the following formula as of the beginning of 2018: the credit equals 12,0 percent (12% in 2017) of the base income that goes above €2,500. However, the maximum total credit is €1,540 (€1,420 in 2017).

If your net taxable earned income is higher than €33,000, the credit is reduced in the 2018 assessment by 1.65% (1,51% in 2017) of the excess that goes over €33,000. For purposes of calculating the reduced credit, all earned income is included in the total: this means that pension income, unemployment benefits and sickness allowance are included. If the 2018 total of your net taxable earned income reaches €127,000 (€127,600 in 2017), you do not get this deduction at all.

More information on the tax credit for work income (in Finnish and Swedish).

Basic deduction for low income taxpayers

This deduction concerns municipal taxation. It is computed using the net taxable earned income as its base, but it is not effected until all other municipal tax deductions are given.

Maximum deduction is €3,100 in 2018 (€3,060 in 2017). If the remainder of your net taxable earned income after all other municipal deductions have been given is higher than €3,100 (€3,060 in 2017), the deduction is reduced by 18 percent of the excess that goes above €3,100 (€3,060 in 2017).

If the 2018 total of your net taxable earned income reaches €20,060 (after all other deductions are made), you do not get this deduction at all.

More information on the basic deduction (in Finnish and Swedish).

Pension-income deduction – state and municipal taxation

This deduction concerns both state and municipal taxation. It is computed using the net taxable earned income as its base. The actual deduction given to you depends on how much taxable wage income and other earned income you have.

State taxation

For 2018, you may get the pension-income deduction if your net taxable earned income is not higher than €41,982 for purposes of state income tax. Maximum deduction is €11,560.

More information on the deduction (in Finnish and Swedish).

Municipal taxation

For 2018, you may get the pension-income deduction if your net taxable earned income is not higher than €26,766 for purposes of municipal income tax. Maximum deduction is €9,040.

More information on the deduction (in Finnish and Swedish).

Deduction for disability – physician's statement required

You are eligible for a tax deduction if you permanently have a degree of disability from 30% to 100% due to illness, injury or other reason.  If you are claiming the deduction for the first time, you must present sufficient evidence (such as a physician's statement) of your degree of disability.

If you receive pension due to the disability, no evidence is required as your degree of disability is in that case be considered to be 100%.  If you receive a partial pension due to your disability, your degree of disability is considered to be 50%.

Deduction for disability in state taxation

The deduction reduces the income tax on earned income, payable to the state.  If you do not have enough income tax to give you credit for, the amount or the un-deducted part of it will automatically be transferred to your spouse, to be deducted from his or her income tax.

The amount is €115 multiplied by the percentage of the degree of disability, in other words, €115 at most.

More information on this deduction in state taxation (in Finnish and Swedish).

Deduction for disability in municipal taxation

This deduction concerns your net taxable earned income in municipal taxation, and if your annual income only consists of pension, you do not get this deduction at all in municipal taxation.

The amount is €440 multiplied by the percentage of the degree of disability, i.e. €440 at most.

More information on this deduction in municipal taxation (in Finnish and Swedish).

Study grant deduction

This deduction concerns your net taxable earned income in municipal taxation, and it can be €2,600 at most. If your net taxable income is higher than €7,800, you do not get this deduction at all.

More information on the taxation of students (in Finnish and Swedish).

More information on the deduction for study grants (in Finnish and Swedish).

Conditions for getting a deduction for a student loan

This deduction is a tax credit that reduces your taxes directly. Its amount is the repayment that you have made in the course of the year. Its maximum amount is 30% of the part of the student loan that exceeds the threshold of €2,500.

More information on the conditions for this deduction (in Finnish and Swedish).

Standard deduction for seafarer’s income

This deduction concerns both state and municipal taxation. It is computed using the seafarer's net taxable earned income as the base. The amount of the standard deduction for seafarer’s income is 20 percent of the total earned as a seafarer. The rate is the same for both state and municipal taxation. However, the maximum deduction is €7,000.

If your net taxable earned income is higher than €50,000, the deduction is reduced by 5% of the excess that goes over €50,000. In turn, it is increased by €170 for each full calendar month when the ship where you work does not return to Finland ( a "cross-trade" deduction ).

More information on the deduction (in Finnish and Swedish).

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