Higher Income Taxes Next Year for Half of Finland
Image: YLE / Anssi Leppänen
More than half of the municipalities in Finland plan to increase their income taxes next year. On average, taxes will rise nearly 0.4 percentage points to 18.98 percent in 181 municipalities.
The Association of Finnish Local and Regional Authorities says increases vary from 0.25 to 1.50 percentage points.
The most common rise is 0.5 percentage points. Such an increase means middle-income earners will have to pay about 15 more euros in taxes per month next year compared to this year.
Despite the rise in income tax, next year municipal taxes will bring in less money, or a decrease of about two percentage points, estimates the association. The weak economy and increasing unemployment are behind the dip.
The association also suggests that within the next few years municipal taxes could be as high as 24 or 25 percent if municipalities don’t get a hold of their spending.
Meanwhile 159 municipalities are not modifying their income taxes next year. Indeed two municipalities, Valtimo and Saltvik, are lowering their income taxes.
YLE