If you surpass your income ceiling late in the year, any benefit paid out by an unemployment fund is taxed with the higher additional rate instead of your standard tax rate.
You can check your income ceiling at the Tax Administration’s MyTax service (by clicking on the link, you are transferred to the Tax Administration’s website). If you are close to surpassing your income ceiling, request a revised tax card for benefits.
Tax card for benefits
You can request a revised tax card directly from the Finnish Tax Administration’s MyTax service for benefit payment purposes. The tax card can be delivered electronically from MyTax to the fund. This helps ensure that the tax rate is current and up to date with the person’s current tax status.
For earnings-related allowance payments, your tax rate is raised to a minimum of 25% unless you provide the fund with a tax card for the benefit. If your tax withholding rate was 15.5%, for instance, without a revised tax card it is automatically increased to 25%.
For detailed instructions on requesting a tax card, go to Vero.fi
Please note that the tax rate for benefits may be higher than for salary because benefits are not subject to the same deductions as salary income. Therefore, you should check your tax rate for benefits and adjust it in relation to the benefit.
Starting in 2025, tax cards are valid from January
In the past, tax cards became valid in February. January taxes were withheld using the tax rate stated in the previous year’s tax card. However, this is about to change. Starting in 2025, tax cards are valid from the beginning of January and the income ceiling stated in the tax card is calculated for the full year.
Read more about changes to tax cards at Vero.fi
