More than 750,000 taxpayers in Finland earned more than they expected in 2021, resulting in a big income tax hit at the end of the year for many.
At the beginning of each year, taxpayers in Finland are obliged to estimate the amount of salary they expect to receive during the year. But a much higher tax rate goes into effect if the estimated amount is breached before the tax year is over.
According to the Tax Administration's senior officer, Päivi Ylitalo, approximately two million people adjusted their tax cards to account for anticipated income rises — but not everyone did.
"This has led to unhappy surprises for many households in regard to salaries paid out in December, Ylitalo said in a statement.
The tax authority recommends that people check their estimated income and make necessary changes to tax rates, so the limit is not breached.
The income tax year begins on 1 February, and people can access and adjust their income tax rate, as well as make other changes here.
Taxpayers were also reminded that if changes are made to their income tax rate, they should forward the information to their employers — or ensure that their workplaces receive their tax rates automatically from the Tax Administration.