Veroluokka

Veroluokka is a Finnish term that translates to tax class or tax category. In the Finnish tax system, veroluokka denotes a designation used by the Tax Administration (Verohallinto) to determine how much tax is withheld and paid by an individual or entity. It is a component in the calculation of taxes, influencing withholding rates and the overall tax payable, rather than representing a standalone tax rate.

In practice, veroluokka is most commonly encountered in the context of earned income and the tax card (verokortti). The tax card shows the applicable veroluokka and the corresponding withholding percentage, which the employer uses to calculate monthly tax withholding. The veroluokka can also appear in other tax determinations, such as in certain municipal, state, or supplementary charges, and in some cases within other tax types where classifications affect tax treatment.

The assignment of veroluokka depends on the taxpayer’s circumstances. Factors typically taken into account include marital status, dependents, housing, and income level. Because circumstances can change (for example, marriage, divorce, the birth of a child, or changes in income), veroluokka may be adjusted when the taxpayer reports relevant information to the tax authorities.

Common discussions of veroluokka refer to two main categories used in practice for earned income, but the exact categories and rules are defined by Finnish legislation and are subject to reform. The concept serves to tailor tax withholding to individual situations within the broader tax system.