Budget 2023 | The Helsinki City Council confirmed the 2023 municipal tax and real estate tax

At the meeting focused on processing the next year’s budget, it was decided on the real estate tax and the municipal tax, which is actually determined by the state.

16.11. 21:50

Helsinki the city council confirmed the municipal tax and real estate tax at its Wednesday meeting.

The municipal tax rate will be 5.36 next year. The tax rate is significantly lower than the 2022 municipal tax, which has been 18.

The background is the changes brought by social security reform. In the future, more tax will be paid on income to the state and less to the municipality.

As a result of the Sote reform, the municipal tax percentage for 2023 is made up of the municipal tax percentage for 2022, which is cut by the percentage point change defined in the legislation. Thus, the level of income taxation remains unchanged.

In the year In 2023, the property tax percentage will remain the same. The city council decided that the general property tax rate will be 0.93 next year. This is Matali’s allowed real estate tax rate.

The real estate tax is paid by Helsinki residents who live on the property.

The percentage of permanent residential buildings is 0.41 and of other residential buildings 0.93.

For next year, the income from the real estate tax is estimated at 300 million euros in the budget. The accounting estimate for 2022 is 295 million euros.

Helsinki tax revenues have increased in recent years, and the trend seems to be upward for 2022 as well.

However, the coming year will bring a significant change. The SOTE reform will transfer part of Helsinki’s tax revenue to the state when the responsibility for organizing social, health and rescue services is transferred to the welfare regions at the turn of the year.

With the reform, Helsinki will remain the only municipality with responsibility for organizing these services. The state also finances the services in Helsinki.

Next year, social security regions will receive more or less the same money from the state as they would have received from the municipalities. By 2029, the funding will gradually change to a model in which some welfare areas lose relatively and some win.

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