An Yle study shows major differences in local taxes levied by various municipalities around Finland next year. Based on the median salary for a childless wage-earner (3,291 euros in September), the difference between the highest and lowest taxed individuals is 2,273 euros annually.
The highest municipal income tax rate in mainland Finland is in Pomarkku, a municipality with less than 2,000 residents in the southwestern Satakunta region, which has a rate of 10.9 percent. The lowest is in Kauniainen, an upscale enclave surrounded by Espoo, where the rate is just 4.7 percent.
Janne Kalluinen, an economist at the Taxpayers Association of Finland, pointed out that municipal tax is just one of an array of taxation forms and wage deductions.
In his view, the differences between various municipal tax rates can be considered reasonably large, though.
"For an average-income earner, the difference between the highest and lowest municipal tax percentages means a difference of thousands of euros in their tax burden," he noted.
A couple of shopping trips’ worth of savings
Four, mostly small, municipalities in mainland Finland have lowered their tax rates for next year: Halsua, Luhanka, Sodankylä and Vehmaa. In the largest of these, Sodankylä, the rate will edge down from 8.0 to 7.5 percent.
Local resident Hannu Hukki told Yle he’s happy to save 150 euros on his taxes for next year, but estimated that it will disappear from his wallet after a couple of shopping trips.
"I plan to visit the store twice," Hukki said.
Espoo and Helsinki among lowest
Altogether 38 municipalities will increase their income tax rates while five will lower them, including Finström in the autonomous Åland Islands. The income tax rate will remain unchanged in 265 municipalities.
Since the health and social care reform of 2023, a total of 32 municipalities have had to increase their income tax rate by more than one percentage point.
Next year, the average municipal tax rate in mainland Finland will be 7.57 percent.
Most of the tax increases are in small and medium-sized municipalities. Besides Pomarkku, the highest rates in mainland Finland are in Ähtäri (10.6%), Halsua (10.5%) and Pukkila (10.4.%). After Kauniainen, the lowest rates are in Espoo, Helsinki and tiny Kustavi (all 5.3%).
