You may not need a new tax card for daily allowances for parents
Kela, the Social Insurance Institution of Finland, calculates the daily allowances for parents using set withholding rates (tax rates). If the tax rate applied to the daily allowances for parents seems too high or low to you, you can apply for a tax card for benefits.
The daily parental allowances are
- pregnancy allowance and partial pregnancy allowance
- parental allowance and partial parental allowance
- paternity allowance if the estimated due date of the baby was before 4 September 2022.
Read more on Kela’s website for Families
Kela receives your valid tax card information directly from the Tax Administration
If you have a valid tax card for wages, Kela automatically applies the tax rate stated in the table below to daily allowances for parents.
See the guidance: How to find your valid tax card in MyTax
| You receive daily allowances for parents or another benefit paid by Kela | Tax rate used by Kela |
|---|---|
| You receive daily allowances for parents for during the year, and you have a valid tax card for wages and your tax rate is less than 25% | 25 % |
| You receive the minimum parental allowance for during the year | 20 % |
| You receive both daily allowances for parents and wages during the year | 40 % |
| You receive a home care allowance and wages during the year, and you have a valid tax card for wages and your tax rate is less than 25% | 25 % |
| You receive wages and a partial parental allowance during the year | Withholding rate for wages, and additional withholding rate |
| You do not have a tax card for wages (for example, you are a self-employed individual or an agricultural operator) or you have a tax card for seafarer's income or trade income. | The amount of daily allowances for parents per day affects the tax rate used by Kela.
Check the tax rate used by Kela in the table (in Finnish and Swedish) |
| During 2024, you are paid daily allowances for parents that belongs to the year 2023 (retroactive payment). | The amount of daily allowances for parents per day affects the tax rate used by Kela.
Check the tax rate used by Kela in the table (in Finnish and Swedish) |
If you do not want to use the tax rates set by Kela, apply for a new tax card for benefits
If the tax rate set by Kela seems too high or low to you, apply for a tax card for benefits.
Check whether it is worthwhile to apply for a tax card for benefits.
If you also receive wage income, request a separate tax card for wages.
See the instructions for using MyTax:
How to request a tax card for benefit income in MyTax
The Tax Administration will send your tax card for benefits directly to Kela.
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