Is one tax card taking more taxes?

fatforeigner · Post by **fatforeigner** » Mon Jan 07, 2013 7:16 am

Is the tax paid the same no matter which tax card you take? The monthly or the yearly? Do they even out to be the same? Or do you end up paying more taxes if you take the yearly card instead of the monthly one?

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interleukin · Post by **interleukin** » Mon Jan 07, 2013 7:25 am

In the end, you pay the same if you specify the same total number. The monthly option is the default and it's fine for people with a steady monthly income. If you know what you get every month in pay, you know what your taxes should be and there are no surprises.
Someone who works irregularly, or gets uneven salaries throughout the year gains from using the yearly option. They would then pay less taxes on the months they actually earn less, and it just gets summed up.
If you specify the correct monthly salary or the correct total salary for the year, it should turn out the same.

fatforeigner · Post by **fatforeigner** » Mon Jan 07, 2013 7:32 am

Ok. Thanks.

So when I get my extra kesärahaa at the end of June that would put my monthly limit way over. What happens then? Do I lose 38% of the entire month's salary then? I get paid at the end of the month and that extra money for summer comes on the same payday.

Rip · Post by **Rip** » Mon Jan 07, 2013 8:17 am

You will pay initially rather lot taxes on your "lomaraha" with monthly option (assuming your regular salary is as much or more than the tax card amount). You pay to lower rate up to the designated upper limit and the higher rate on rest of the monthly pay (including lomaraha)

I am not sure, but looking sometimes at my own pay slips this seems to sometimes been compensated over the following months, but I have never even tried to understand the formula

What I am sure is, that the following year the tax office calculates the amount of taxes you should have really paid and the amount of withheld is compared with it and the balance is either given back to you or you're requested to pay it in December. So, in the long run (about 18 months on average), the rates in your tax card don't matter.

fatforeigner · Post by **fatforeigner** » Mon Jan 07, 2013 8:20 am

Ok. Thanks!

Upphew · Post by **Upphew** » Mon Jan 07, 2013 9:17 am

Too low yearly option: December gets taxed at higher percent
Too low monthly option: every month part of your wage is taxed at higher percentage.

In the end you pay just as much taxes with either option. The difference is how much you have Christmas shopping money...

fatforeigner · Post by **fatforeigner** » Mon Jan 07, 2013 9:42 am

Thanks. I took the yearly option.

I put more than enough percent to cover my yearly earnings, so I should be alright.

Thanks!

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