Tax card

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krapulassa
Posts: 83
Joined: Thu Sep 03, 2020 8:23 pm

Tax card

Post by krapulassa » Fri Jan 29, 2021 3:46 am

My tax card information says:

Tax rate 6,5 %
Additional withholding rate 26,0 %
Income ceiling for the remaining year ----
Tax card is valid 29.01.2021 to 31.12.2021

On this tax card, will I be paying tax on my income at the rate of 26% or 6%?



Tax card

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FinnGuyHelsinki
Posts: 1439
Joined: Sun Nov 08, 2009 8:52 pm

Re: Tax card

Post by FinnGuyHelsinki » Fri Jan 29, 2021 8:25 am

krapulassa wrote:
Fri Jan 29, 2021 3:46 am
My tax card information says:

Tax rate 6,5 %
Additional withholding rate 26,0 %
Income ceiling for the remaining year ----
Tax card is valid 29.01.2021 to 31.12.2021

On this tax card, will I be paying tax on my income at the rate of 26% or 6%?
The base rate is used for income up to the income ceiling, additional witholding rate for any income exceeding that. Ultimately you will be taxed the same amount of euros, no matter which rates are used during the year.

Usually people want a fixed tax percentage throughout the year (as opposed to having to pay more tax towards the end), and therefore get a tax card for the annual income they expect to get. For freelancers and others without a steady monthly paycheck the annual earnings of course may be more difficult to estimate. Rest assured, each and every cent of tax will be collected, it's just a matter of when.

mdn
Posts: 104
Joined: Thu Dec 07, 2006 9:58 am
Location: Tampere, Finland

Re: Tax card

Post by mdn » Fri Jan 29, 2021 10:29 am

krapulassa wrote:
Fri Jan 29, 2021 3:46 am
On this tax card, will I be paying tax on my income at the rate of 26% or 6%?
If you are employed, do not forget that you will receive less.
For tax calculator for 2021: "In addition to taxes, a pension insurance contribution of 7,15% and an unemployment insurance contribution of 1,40% is collected from your pay. If you want to calculate how much pay you have left after the taxes and charges, add 8,55% to your tax rate."


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