🇫🇮 Finland: Contractor vs Employee

2026 estimates · Y-tunnus holder · Change any input and results update instantly

Income & Contract

Tax Settings

21.5%
24.4%

Employer Side Costs

17.1%
4%

Employee Deductions

7.15%
0.79%
⚠️ VAT registration required: Revenue exceeds €20,000/year threshold. As a contractor you must register for VAT (24%) and charge it to clients. This does not affect your net income from Finnish clients who can reclaim VAT, but affects pricing and admin.

Net Income After All Deductions & Tax

Contractor Y-tunnus

€0
take-home per year
Revenue€0
Business expenses−€0
YEL pension−€0
Taxable income€0
State income tax−€0
Municipal tax−€0
Sickness ins.−€0
Net income€0

Employee Palkansaaja

€0
take-home per year
Gross salary€0
TyEL pension−€0
Unemployment ins.−€0
Taxable income€0
State income tax−€0
Municipal tax−€0
Sickness ins.−€0
Net income€0

Buyer / Employer Total Cost

Contractor Invoice

€0
your invoice amount

Employee Total Cost

€0
= salary + pension + other costs
Cost comparison: Calculating…
▸ Show Finnish state income tax brackets (2026)
Taxable incomeMarginal rateTax on bracket
€0 – €20,5000%€0
€20,500 – €31,00012.64%max €1,327
€31,000 – €52,10019.64%max €4,144
€52,100 – €81,90023.64%max €7,042
€81,900+31.64%—

State tax brackets are approximate 2026 estimates. Municipal tax is added on top (flat rate). Sickness insurance: ~1.87% of taxable income.

Monthly Estimate

Contractor monthly net
€0
Employee monthly net
€0
Effective tax rate — contractor
0%
Effective tax rate — employee
0%

* Estimates only. Does not include church tax, YLE tax, or earned income deductions. Consult a Finnish accountant for accurate tax cards. YEL insurance deduction reduces taxable income for state tax.