Veroasteikko

Veroasteikko refers to the tax scale used in Finland to determine income tax rates. It is a progressive system, meaning that as an individual's income increases, the proportion of that income paid in taxes also increases. The tax scale is set annually by the Finnish Parliament and is based on taxable income.

The veroasteikko consists of several income brackets, each with a corresponding tax percentage. For instance, there are lower brackets with lower tax rates applied to smaller incomes, and higher brackets with progressively higher tax rates for larger incomes. These tax rates are applied to earned income, such as wages and salaries, as well as some other forms of income.

It is important to note that the veroasteikko is just one component of the Finnish tax system. Other taxes, such as municipal tax, church tax (for members of the Evangelical Lutheran or Orthodox churches), and social security contributions, are also levied. The specific tax rate an individual pays is calculated based on their total taxable income and the applicable deductions and allowances. The Finnish Tax Administration, Verohallinto, provides detailed information and calculators to help individuals understand their tax obligations based on the current veroasteikko.