Finland Parliament Passes Bill to Amend Income Tax Scale, Other Tax Acts for 2026

The Finnish Parliament (Eduskunta) Nov. 19 passed a bill to amend the Income Tax Act and related tax laws for 2026. The proposal includes measures to: 1) reduce the top marginal earned income tax rate to 52 percent, and apply a 3.6 percent index adjustment to most brackets; 2) increase the maximum basic deduction to 4,265 euros (US$4,967); 3) increase the maximum earned income deduction to 3,430 euros (US$3,995), increase the income threshold for withdrawal to 35,000 euros (US$40,768), and reduce the withdrawal rate to 2 percent; 4) abolish the home office deduction and the tax exemption for employee bicycle ...