Tax cards are valid for one calendar year, which means they expire on 31 December. This also applies to revised tax cards issued for benefits. A revised tax card used in December is no longer valid after 1 January.
At the beginning of the year, the Finnish Tax Administration automatically sends a new tax card for salary payment purposes. If you do nothing, this so-called income tax card is also valid for benefit payments – but its withholding rate is often too high to be used for benefits. The tax withholding on benefits with an income tax card is always at least 25%, even if the card shows a lower rate for wages.
If you want tax to be withheld correctly from your benefit (usually at a lower rate), you should request a new revised tax card for benefits in the Tax Administration’s MyTax service. Indicate that the card is for benefits, and the unemployment fund will receive it automatically in electronic form.
The income limits on tax cards are based on your total annual income and reset at the turn of the year. Check your income limit in MyTax at the beginning of the year, and if necessary, order a new revised tax card with the correct income limit. If the income limit is exceeded, the benefit will be taxed at a higher additional rate.
You can also check your tax information in the eService.
How is it possible that the tax rate for benefits can be higher than the tax rate for salary?
Benefit income is not subject to the same deductions as salary income, which may result in a higher tax percentage. To ensure correct taxation, check your tax card and order a revised tax card for the benefit if necessary.
How to request a revised tax card for benefits:
- Sign in to the MyTax service on the Tax Administration’s website.
- Request a revised tax card and provide it to the Open Unemployment Fund.
- The fund receives the new tax card information automatically within two business days.
The Finnish Tax Administration usually opens the new year’s tax information and the possibility to request new tax cards in mid-December (around 12–15 December).
For more information and detailed instructions, please see the Tax Administration’s website: vero.fi/en
Let’s keep your taxation up to date!