Marginal rate · pay raise 2026
How much of a pay raise you keep in Finland, 2026
A pay raise leaves less in hand than the gross amount, because income tax is progressive. For example, on €3,000/mo a €100 raise leaves about €61, and on €3,500/mo about €56 — a marginal rate of roughly 39–44%.
The marginal rate shows how much of your next earned euro goes to tax. Enter your current salary and the raise — the calculator shows how much of the raise you keep.
See the net effect of a raise
You keep from the raise
€1,666/ yr
of a €3,000 / yr raise · Marginal tax rate 44.5%
| Net pay now | €32,680 / yr |
| Net pay after the raise | €34,346 / yr |
| Of the raise, to tax and contributions | −€1,334 / yr |
| You keep from the raise | €1,666 / yr |
The calculator assumes your whole annual income is salary and that you are aged 18–64. It does not account for personal deductions (such as commuting costs or the household expenses credit), so your own tax-card rate may be slightly lower.
What is the marginal tax rate?
The marginal tax rate is the share of your next earned euro that goes to taxes and contributions. It is higher than your average tax rate because taxation is progressive: a raise, overtime or bonus is taxed at the top of your income. The calculator compares your net pay before and after the raise using the same 2026 basis (progressive state income tax, municipal and any church tax, the medical-care contribution, the public-broadcasting tax, and the pension, unemployment and daily-allowance contributions) and shows how many euros of the raise you actually keep. For mid-to-high earners the marginal rate in Finland in 2026 is typically around 40–52%.
What is the marginal tax rate and why do you keep less of a raise?
The marginal rate is the tax rate on the last euro earned — not on your whole salary. Because state income tax is progressive (2026 schedule 12.64–37.5%), extra income is taxed at a higher rate than your average pay.
The marginal rate is also raised by the tapering earned-income credit: it starts to fall after €35,000/yr (2%/euro) and disappears at €50,550/yr. So a middle earner's marginal rate can be 40–50%, even though the average rate is clearly lower.
The same applies to overtime, bonuses and holiday bonus: they are taxed at the marginal rate. This calculator computes the real take-home share under 2026 taxation, not just a headline rate.
Frequently asked questions
How much of a pay raise do you keep?
It depends on income. On €3,000/mo a €100 raise leaves about €61, on €3,500/mo about €56. A middle earner's marginal rate is typically 39–47%.
What is the marginal tax rate?
It is the tax rate on the last euro earned. It is higher than the average rate because income tax is progressive, and it determines how much of a raise, overtime or bonus you keep.
Why is the marginal rate so high for middle earners?
Besides progressive tax, the earned-income credit tapers after €35,000/yr and ends at €50,550/yr. This pushes a middle earner's marginal rate to 40–50%, even though the average rate is much lower.
Is a raise worth it if tax takes a big share?
Yes — you always keep more than zero, since the marginal rate never exceeds 100%. Even if €55 of €100 remains, it is a permanent addition to net income. In Finland a raise never reduces net income.
Are holiday bonus and bonuses taxed the same way?
Yes. Holiday bonus, bonuses and overtime are added on top of annual income and taxed at the marginal rate, so you keep relatively less of them than of base salary.