Eva: Finnish taxes to hit decade-long high next year

When all forms of taxation are taken into account, a person on an average wage of about 3,700 euros could face paying a tax rate of 43.7 percent in 2025, according to the think tank's calculations.

front of the Finnish tax administration office building with sign saying Vero.
File photo of the offices of the Finnish Tax Administration. Image: Patrik Molander / Yle
  • Yle News

The average wage-earner in Finland will pay more in taxes next year than at any time over the last decade, according to figures released on Tuesday by the Finnish Business and Policy Forum (Eva), a think-tank.

Eva's calculations revealed that employed people will be hit by an increase in tax on income as well as a rise in so-called consumption taxes, such as value added tax (VAT).

For example, based on Eva's figures, a person earning an average income of 3,746 euros per month — who pays the standard rate of tax for that amount and spends their income according to average consumption trends — will face an overall tax rate of about 43.7 percent.

Finland's government raised the general rate of VAT to 25.5 percent, from the previous level of 24 percent, earlier this year as it seeks to balance the nation's books to the tune of some 9 billion euros during its term in office.

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