Henkilötulot

Henkilötulot refers to the total income an individual earns from various sources within a tax year in Finland. This broad category encompasses all forms of earnings that are subject to income tax. The primary components of henkilötulot include earned income, such as wages, salaries, and benefits from employment, as well as income from self-employment, like profits from a business or professional activities. Additionally, capital income, such as rental income, dividends, and interest, is also considered a form of personal income for tax purposes, although it is taxed differently.

The Finnish tax system distinguishes between earned income (ansi oulot) and capital income (pääomatulot). While both are part of an individual's total income, the tax rates and deductions applied to each category differ significantly. Earned income is taxed progressively, meaning the tax rate increases with higher income levels. Capital income, on the other hand, is generally taxed at a flat rate. This distinction is crucial for understanding an individual's overall tax liability.

The concept of henkilötulot is central to the Finnish income tax system. It forms the basis for calculating an individual's tax burden, as well as for determining eligibility for various social benefits and deductions. The Finnish Tax Administration (Verohallinto) is responsible for assessing and collecting income taxes based on the reported henkilötulot of each taxpayer. Accurate reporting of all income sources is therefore essential for individuals to comply with tax regulations.