Published: 17 December 2015

Direct taxes increased by four percent

Income earners paid in total EUR 29.8 billion in direct taxes and payments in 2014. In nominal terms, taxes grew by 3.7 per cent from the year before. Of the taxes, taxes on capital income amounted to EUR 2.4 billion, income tax to EUR 5.7 billion and municipal tax to EUR 18.3 billion. Compared to the year before, the amount of taxes on capital income, by 12.1 per cent grew most, when income tax went up 0.6 per cent and municipal tax by 3.7 per cent. Income earners paid EUR 1.3 billion in healthcare contributions, EUR 713 million in earned-income contribution payments and EUR 499 million in public broadcasting tax.

Income earners’ direct taxes in 1993 to 2014, at 2014 prices

Income earners’ direct taxes in 1993 to 2014, at 2014 prices

In 2014, the share of municipal tax in direct taxes was 62 per cent, having been 50 per cent in 1993. The share of state income tax in taxes diminished during this time from 31 to 19 per cent. In 2014, taxes on capital income accounted for 8.0 per cent of taxes, sickness insurance contributions for 6.6 per cent and the public broadcasting tax for 1.7 per cent. In total, taxes and payments have increased by 39 per cent in real terms from 1993.

Taxable income received by income earners totalled EUR 131.4 billion, of which earned income amounted to EUR 122.7 billion and capital income to EUR 8.7 billion. From the year before, the income grew in nominal terms by 2.4 per cent, earned income by 1.8 per cent and capital income by 12.2 per cent. Earned income was received by 4.6 million persons and capital income by 1.4 million.

Earned income increased most due to pensions and benefits based on unemployment security. Income earners received EUR 28.5 billion in pension income, which was 3.4 per cent more than in the year before. Of earned income, most growth was recorded for daily unemployment allowances and other unemployment benefits, up by 14.9 per cent. Income earners received EUR 4.8 billion in such benefits. Income earners received EUR 81.0 billion in earned income, which was 62 per cent of taxable income. Wages and salaries grew by 0.5 per cent from the previous year.

Taxable capital income grew more than earned income. This was partly due to the fact that a larger part of dividends than before were taxable income. Income earners received taxable dividends from listed shares to the tune of EUR 932 million and from unlisted shares EUR 717 million. Dividends from listed shares grew by 38 per cent, but those received from unlisted share went down by 1.7 per cent. Income earners received EUR 4.1 billion in transfer gains and EUR 1.5 billion in rent income. Transfer gains grew by 6.4 per cent and rent income by 4.4 per cent.

Income earners received EUR 2.9 billion in income from business activities, which was 0.2 per cent less than in the previous year. Income earners received EUR 992 million in income from agriculture and EUR 1.2 billion from groups. Income from agriculture diminished by 0.1 per cent and income from groups by 2.3 per cent from the year before.

In 2014, income earners paid 22.7 per cent of their taxable income in taxes and taxable payments, while in the previous year, the corresponding share was 22.4 per cent. Taxes and payments here include taxes on earned income and capital income, municipal taxes, church taxes, sickness insurance contributions and public broadcasting tax. Wage and salary earners' mandatory pensions contributions, including taxes and payments, claimed 26.4 per cent of income in 2014 and 26.0 per cent in 2013.


Source: Taxable incomes 2014, Statistics Finland

Inquiries: Timo Matala 029 551 3422, toimeentulo@stat.fi

Director in charge: Jari Tarkoma

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Updated 17.12.2015

Referencing instructions:

Official Statistics of Finland (OSF): Taxable incomes [e-publication].
2014. Helsinki: Statistics Finland [referred: 18.6.2019].
Access method: http://www.stat.fi/til/tvt/2014/tvt_2014_2015-12-17_tie_001_en.html