0 %

electric, in use from 1 Oct 2021

2,7 %

lowest rate

48,9 %

highest rate

6 months

limit for counting as new

How is car tax calculated?

The formula is straightforward: car tax equals the taxable value multiplied by the car tax rate. Each factor is settled separately. The value comes from what the car is worth on the Finnish market, and the rate comes from the carbon dioxide emission. Both numbers are needed before the final tax can be estimated.

What is the taxable value?

It is the general retail value of the car in Finland including VAT. For a used import the Tax Administration determines it statistically, from the price level of comparable cars on sale in Finland. Make, model, age, mileage, equipment and condition all feed into it. The price paid abroad is not the basis for the tax, even when it is clearly lower.

A car counts as new if it is under 6 months old or has been driven under 6 000 kilometres. In that case the taxable value is based on the retail price of a new car rather than the used market level.

Car tax rate by CO2 emission

The rate is read from the tax table gram by gram. The current table 1 A sits in law 1172/2021 and is based on WLTP measurement. It holds a separate rate for every emission value from zero to 360 grams, and from 360 grams upwards the final value applies.

Three worked examples

Electric cars pay zero car tax

The car tax rate for a fully electric or hydrogen passenger car or van is 0 when the car was first taken into use on 1 October 2021 or later. This covers used electric cars imported from abroad as well: what matters is the first date of use in any country, not the date of registration in Finland. A car tax declaration is still filed, but the amount is zero.

Two special rules for used imports

First, a used import is taxed at the level in force on the date the car was first taken into use. An older car may therefore fall under an earlier table, such as laws 777/2020, 570/2018 or 1481/2015. The current table 1 A does not apply to every imported car.

Second, the car tax on a used car imported from the EU may not exceed the residual tax contained in the value of a comparable car already registered in Finland. The rule rests on the EU principle of non discrimination and prevents an imported car being taxed more heavily than a domestic equivalent.

Filing and confirming the amount

• ·The car tax declaration is filed with the Tax Administration before the car is registered in Finland.
• ·The final amount is confirmed by a car tax decision — calculators only give a direction.
• ·Earlier tax decisions and the taxable values applied in them can be browsed on vero.fi.
• ·A binding advance ruling on the tax or the taxable value is available from the Tax Administration for a fee.
• ·Besides car tax, VAT or customs duty may fall due if the car is imported from outside the EU.