Find out your income
You can start planning the economy by finding out how much income you get.
Your income may consist of several sources, such as salary income, business income, pension, and various types of subsidies and benefits. Income may vary on a monthly basis, for example due to various allowances paid for work or irregular working hours.
Gross income refers to income before taxes and other deductions. The net income is the share of the income that you are paid. Always plan your finances based on net income.
Do this
Write down all your income and their payment dates on paper so you know when the money is in your account. You can find out your net income from pay statements, benefit statements and bank statements. You can also find information about your income in the income register.
Taxes and tax deductions
At the beginning of each year, the Tax Administration sends you a tax card with an estimate of your income during the year. The tax card also indicates your withholding tax rate calculated based on your estimated income. Taxes will be withheld from your income according to that tax rate. The higher the tax rate, the more taxes you pay.
Other tax-like charges can also be levied on your income. These include unemployment and pension insurance contributions, as well as health insurance contributions
Update your tax card if necessary
You should check your tax rate and income ceiling a few times a year and request a revised tax card if necessary. This is particularly important if your income changes. If your tax rate is too low, you will have to pay back taxes. If you pay too much tax, you will receive a tax refund.
Tax deductions
Tax deductions reduce the amount of tax you need to pay. Tax deductions can be made for things like paid maintenance and expenses for the production of income. If you sell your property at a loss, the loss is deductible. You may also be entitled to a special deduction for a reduced capacity to pay taxes because of an illness or incapacity for work, for example.
Some tax deductions have an own-liability threshold. This means that tax deduction can only be obtained for the amount exceeding the threshold.
The Tax Administration does not make all deductions automatically, so you should find out which deductions you are entitled to. You can claim deductions on the website of the Tax Administration.