Municipal tax in Finland 2026 — where do you pay least?
The municipal tax rate on the Finnish mainland ranges from 4.70 to 10.90 per cent. The lowest is in Kauniainen and the highest in Pomarkku. The gap of 6.2 percentage points means roughly 2,790 euros a year in tax on a 45,000 euro income.
Municipal tax follows your municipality of residence, not your workplace. What decides is the municipality where you live at the start of the tax year. Below are the cheapest and most expensive municipalities, three worked examples, and what to weigh alongside the rate itself.
- 4.70 %
- lowest — Kauniainen
- 10.90 %
- highest — Pomarkku
- 6.2 pp
- gap between the extremes
- 292
- mainland municipalities
What is municipal tax?
Municipal tax is levied on earned income, and each municipality sets its own rate every year. It is charged on taxable earned income — income after deductions. The tax payable is therefore not simply a percentage of gross salary: deductions reduce it, especially at lower incomes.
In the 2023 health and social services reform, municipal rates were cut in a one-off adjustment, because funding for those services moved to the wellbeing services counties. The differences between municipalities nonetheless remained clear.
Cheapest and most expensive municipalities 2026
| Municipality | Rate | Rank |
|---|---|---|
| Kauniainen | 4.70 % | lowest |
| Espoo | 5.30 % | joint 2nd |
| Helsinki | 5.30 % | joint 2nd |
| Kustavi | 5.30 % | joint 2nd |
| Halsua | 10.50 % | third highest |
| Ähtäri | 10.60 % | second highest |
| Pomarkku | 10.90 % | highest |
Three worked examples
The examples are calculated straight from taxable earned income without deductions, so that the difference between municipalities shows clearly. The real tax will be lower because of deductions, but the relationship between municipalities stays the same.
| Annual income | Kauniainen 4.70 % | Helsinki 5.30 % | Pomarkku 10.90 % |
|---|---|---|---|
| €30,000 | €1,410 | €1,590 | €3,270 |
| €45,000 | €2,115 | €2,385 | €4,905 |
| €60,000 | €2,820 | €3,180 | €6,540 |
Is it worth moving to a cheaper municipality?
The rate alone does not settle it. Municipalities with low municipal tax often have higher housing costs, and the tax saving can disappear into rent or mortgage several times over. Kauniainen is the clearest example: the lowest rate in the country and also one of the most expensive places to live.
- What decides is your municipality of residence at the start of the tax year, not where you work.
- Church tax is levied alongside municipal tax if you are a church member — typically 1.0–2.0 per cent.
- Deductions reduce the tax payable, so the effective rate is lower than the headline percentage.
- Always compare the whole picture: housing cost, commute and services, not the tax rate alone.
Calculators for this topic
FAQ
What is the municipal tax rate in 2026?
On the Finnish mainland it ranges from 4.70 to 10.90 per cent depending on the municipality. The lowest is Kauniainen, the highest Pomarkku. Each municipality sets its own rate annually.
Is municipal tax based on my workplace or my home?
On your municipality of residence. What decides is where you live at the start of the tax year — the municipality where you work does not matter.
Which municipality has the lowest municipal tax?
Kauniainen, at 4.70 per cent. Next come Espoo, Helsinki and Kustavi, all at 5.30 per cent.
How much does the municipality affect net pay?
On a 45,000 euro income the gap between the cheapest and most expensive is about 2,790 euros a year. At 60,000 euros the gap grows to roughly 3,720 euros.
Why do I pay less than the headline rate suggests?
Because municipal tax is charged on taxable earned income after deductions. Deductions reduce the tax payable, particularly at lower incomes.