Published: 19 December 2013

Share of municipal taxes in all taxes was 64 per cent

Income earners paid EUR 26.8 billion in direct taxes and payments in 2012, which was 2.1 per cent more than in 2011. They paid EUR 17.0 billion in municipal tax, EUR 5.3 billion in taxes on earned income, and EUR 1.7 billion in taxes on capital income. Municipal tax grew by 3.6 per cent and taxes on earned income by 0.4 per cent from the year before. By contrast, taxes on capital income decreased by 8.4 per cent. Income earners paid EUR 1.8 billion in healthcare contributions and earned-income contribution payments, which was five per cent more than in the previous year.

Income earners' direct taxes in 1993-2012, at 2012 prices

Income earners' direct taxes in 1993-2012, at 2012 prices

Taxes and payments have increased by 31 per cent in real terms from 1993. During the same period, the share of municipal taxes in all taxes has grown from 50 to 64 per cent and that of state taxes has decreased from 33 to 26 per cent. The share of social security contributions in taxes and payments was good 13 per cent in 1993 and 6.7 per cent in 2012.

Income earners received EUR 124.4 billion in taxable income in 2012, which was three per cent more than in 2011. Of the income, EUR 117.8 billion was earned income and EUR 6.6 billion was capital income. Earned income increased by 4.3 per cent, while capital income decreased by 15 per cent. There were 4.6 million income earners, 4.5 million people received earned income and 1.3 million people received capital income.

EUR 79.8 billion of earned income were wage and salary income and EUR 26.1 billion were pension income. Wages and salaries grew by 3.7 per cent and pensions by 6.3 per cent from the year before. Of earned income, most growth was recorded for daily unemployment allowances and other benefits based on unemployment security, 13 per cent. Income earners received EUR 3.6 billion in such benefits.

Of capital income, transfer gains decreased most. Income earners received EUR 2.5 billion of them, which was one-third less than in the previous year. Income earners received six per cent less in dividends taxed as capital income in 2012 compared to 2011, EUR 1.5 billion. Of these, EUR 721 million came from listed, EUR 661 million from unlisted and EUR 101 million from foreign companies. Of capital income, only rental income and interest on co-operative capital grew. Rental income increased by 3.8 per cent, amounting to EUR 1.4 billion. Only EUR 14.2 million of interest on co-operative capital was taxable capital income, and they grew by 14 per cent.

Income earners received EUR 3.0 billion in income from business activities, which was the same amount as in the year before. However, entrepreneurial income from agriculture and groups decreased. Income earners received EUR 1.0 billion in income from agriculture, and EUR 1.3 billion from groups. Income from agriculture diminished by 1.4 per cent and by 2.3 per cent from groups.

The share of taxes and payments in taxable income for income earners was 21.5 per cent. In the previous year, this share was 21.7 per cent. Taxes and payments here include taxes on earned income and capital income, municipal taxes, church taxes and sickness insurance contributions. In addition, EUR 4.6 billion in employment pension and unemployment insurance contributions were collected from wage and salary earners. Inclusive of mandatory pensions contributions, taxes and payments claimed, on average, 25.2 per cent of income.


Source: Taxable incomes 2012, Statistics Finland

Inquiries: Timo Matala 09 1734 3422, toimeentulo@stat.fi

Director in charge: Riitta Harala

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Updated 19.12.2013

Referencing instructions:

Official Statistics of Finland (OSF): Taxable incomes [e-publication].
2012. Helsinki: Statistics Finland [referred: 18.6.2019].
Access method: http://www.stat.fi/til/tvt/2012/tvt_2012_2013-12-19_tie_001_en.html