Business · advance tax 2026
Advance tax (ennakkovero) in Finland 2026 — sole trader
Advance tax (ennakkovero) is prepaid income tax on a sole trader’s (toiminimi) estimated profit — the self-employed equivalent of wage withholding. The calculator estimates it: a 5% entrepreneur deduction and the YEL contribution are first removed from the business profit, then the remainder is split into capital income (20% of the net-assets return, taxed 30/34%) and earned income (progressive).
You see the estimated yearly tax, the number of installments and a suggested monthly buffer covering both the tax and YEL. The minimum advance tax charged is €170. The final advance tax is set by the Tax Administration in OmaVero.
Calculate your advance tax
Turnover minus expenses — not turnover. Before the entrepreneur deduction and taxes.
Assets − debts. Affects the capital share (20% of the return).
Advance tax per year
€2,078€/year
Installments
3 installments × €693
Set aside per month
€986
Includes both the advance tax and the YEL contribution. Move this amount aside every month.
How the advance tax is formed
| Business profit | €40,000 |
| – Entrepreneur deduction 5% | €2,000 |
| – YEL contribution | €9,760 |
| Taxable income | €28,240 |
| Earned-income share | €28,240 |
| Earned-income tax | €2,078 |
| Total advance tax | €2,078 |
The advance tax is an indicative estimate based on the national-average municipal tax rate and does not account for all personal deductions. The number of installments and the due dates are set by the Tax Administration in OmaVero. In 2026 the late-payment interest is 9.5%. Update your profit estimate in OmaVero if the result changes during the year.
How is a sole trader’s advance tax calculated in 2026?
A sole trader’s advance tax (ennakkovero) is income tax paid in advance on the estimated profit. The calculation starts from the business profit — turnover minus expenses. From the profit, an automatic 5% entrepreneur deduction and the YEL contributions (deductible) are removed first. The remaining taxable income is split into capital and earned income: 20% of the annual net-assets return is capital income (taxed at 30/34%) and the rest is earned income, taxed progressively via state and municipal tax. The resulting tax is the advance tax, divided into installments: a tax of €500–2,000 is paid in two installments, €2,000–10,000 in three, and over €10,000 monthly, i.e. 12 installments. The due date is the 23rd of the month. An advance tax below €170 is not charged separately. It is worth setting aside a monthly buffer covering both the advance tax and YEL.
How advance tax is set and when it is paid
Advance tax is based on your own estimate of the profit for the accounting period. The Tax Administration calculates the advance tax from it and splits it into installments: there are typically 2–12 depending on the size of the tax (for example, €500–2,000 in two installments and over €10,000 in twelve monthly installments). If the profit differs from the estimate, you can change the advance tax in OmaVero during the year — too small an advance leads to back tax and possible interest.
It is worth setting aside your own buffer for tax every month, because advance tax and YEL fall due regularly. The monthly amount the calculator suggests helps keep the money ready by the due dates. Remember that advance tax is income tax; VAT is paid separately on your own initiative.
Frequently asked questions
What is advance tax (ennakkovero)?
It is prepaid income tax on a sole trader’s estimated profit, the self-employed equivalent of wage withholding. The Tax Administration sets it based on the income estimate you provide.
How is advance tax calculated in 2026?
A 5% entrepreneur deduction and YEL are removed from the business profit, then the remainder is split into capital income (20% of the net-assets return, taxed 30/34%) and earned income (progressive).
In how many installments is advance tax paid?
The number depends on the size of the tax: typically 2–12. For example, €500–2,000 is paid in two installments and over €10,000 in twelve monthly installments.
What if the estimated profit changes?
You can change the advance tax in OmaVero during the year. If the advance is too small, back tax arises; an excess advance can be refunded. It is worth keeping the estimate up to date.
Does advance tax include VAT?
No. Advance tax is income tax. VAT is reported and paid separately on your own initiative if you are in the VAT register.