Tax rate and income ceiling

Your tax rate will change when you request a new tax card and report your up-to-date income and deduction details. Request a new tax card in MyTax.

You can also raise your tax rate by asking your employer or pension provider to apply a higher tax rate than what is indicated in your tax card. Note, however, that your income ceiling will not change, so the payor must use the additional rate if your income for the year exceeds the income ceiling indicated in the tax card.

If your income decreases or your deductions increase, you can change your tax rate by requesting a new tax card and reporting your up-to-date income and deduction details in the request. In other words, you cannot just lower your tax rate, but when you change your tax card details, the tax rate will change as a result. Request a new tax card in MyTax.

Your tax rate may rise if

• you have made changes to your tax card, such as increased the amount of wage income, added new income or reduced the amount of deductions 
• you have paid too little tax so far during the year because your tax rate has been too low
• your income so far has exceeded the income ceiling and tax is withheld at the additional rate.

Check your tax card details. Delete any deductions you no longer have and add new deductions if necessary. When the income and deductions in your tax card are accurate, your tax rate is correct.  

You can see the grounds for your current tax rate on the decision on prepayments. You can find the decision in your MyTax mailbox.

In some cases, your tax rate may drop even if you raise your income estimate. A reason for this may be that you have asked for a higher withholding rate at the beginning of the year or you have added deductions to your tax card.

Check that the income you reported at the beginning of the year, the taxes withheld and the deductions made are correct.

When the income and deductions in your tax card are accurate, your tax rate is correct.

The income and deductions used in the calculation of the tax rate are shown in the tax decision that accompanied the tax card.

If you have changed the tax rate indicated in your tax card, the tax card for the following year will be based on the changed information. Alternatively, the Tax Administration may calculate the tax rate for your tax card based on the income and deductions in your latest completed tax assessment, i.e. based on your latest tax return. Pension institutions report the amounts of pensions directly to the Tax Administration. The amounts of pensions are not based on the previous years' information.

You can estimate whether your tax rate needs to be changed either in MyTax or with the tax rate calculator. Please note that the result generated by the tax rate calculator is only a rough estimate.

• Tax rate calculator
• Tax bases for tax rates in 2025

Request a new tax card in the following situations.

1. Your income changes: When your income changes, for example because you start a new job, receive a pay increase or your employment ends, you should also request a new tax card. In this way, you ensure your tax rate will be in line with your new level of income.
2. Your deductions change: Commuting expenses, expenses for the production of income and credits for household expenses can be taken into account in the tax rate calculated for you tax card. Delete any deductions you no longer have. 

In general, you should always request a new tax card if your income changes significantly. When you do so, the right amount of tax can be withheld and you can avoid back taxes.