Regardless of where you live, you pay a significantly different amount of taxes with the same income.
Properly the chosen place of residence can save you a big cent in taxes. For example, those who earn 41,400 euros a year pay just over 1,520 euros in municipal tax when they live in Kauniainen, while those who live in Halsua pay more than 3,730 euros in tax on the same income. The difference is more than two thousand euros.
The result can be seen from the calculation made by Taxpayers HS at the request.
The difference between Halsua and Kauniainen is explained by the municipal tax percentage. In Halsua, the municipal tax percentage is the highest in Finland, 10.8 percent. In Kauniainen, the tax is the lowest, 4.4 percent.
The tax burden of those living in Kauniainen is also significantly lower compared to their southern neighbors. With an annual income of around 40,000 euros, municipal tax is paid in Kauniain more than 300 euros less than in Espoo and Helsinki, and almost 700 euros less in Vantaa.
With higher incomes, the differences grow even more. For example, with an annual income of around 100,000 euros, people from Espoo and Helsinki pay about 840 euros more to their municipalities than people from Kaunas. For people from Vantaa, the difference is already close to 1,900 euros, and for people from Halsu to almost 6,000 euros.
HS said on Tuesday that the municipal taxation of more than a million Finns will be tightened this year compared to last year.
Taxpayers' calculations show that tax extortion is felt concretely in people's wallets.
Valkeakoski increases the tax the most, calculated in percentage points. The city of approximately 20,000 inhabitants, known for its paper industry and football, increased its municipal tax by 1.29 percentage points. In practice, this means that the tax burden of someone who earned 40,000 euros last year will increase by 580 euros.
The calculation has taken into account that this year's wages are estimated to be about 3.5 percent higher than last year. The calculation therefore assumes that, for example, those who earned 40,000 euros last year will increase their salary by 41,400 euros this year. The calculation describes well how the increase in earnings flows to the taxman.
The calculations describe the situation of wage earners aged 18–52. Only ex officio reductions are taken into account in the calculations.
For municipal taxation a major reform was carried out in connection with the social security reform that entered into force in 2023.
At the beginning of last year, the income tax rates of all municipalities in mainland Finland were reduced by 12.64 percentage points. For this year, the tax percentages of all municipalities in mainland Finland were rounded to the nearest tenth, as a result, the tax percentage changed at least slightly in all municipalities.
Before the social security reform, the vast majority of the taxes collected by the municipalities were spent on social and health services. After the reform, so-called welfare areas are responsible for social security services, whose funding comes from the state. Nowadays, a large part of the taxes paid by the municipalities is captured by education and early childhood education.
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