Municipalities in Finland announce tax rate increases for 2025

Municipalities in Finland are currently deciding their tax rates for next year. According to the Municipal League’s updated website, 39 municipalities have announced their income tax rates for 2025 so far. Notable increases are expected in Hartola, Pihtipudas, Pukkila, Rusko, and Uurainen, with Pukkila seeing a full percentage point rise. Minna Punakallio, the chief economist at the Municipal League, stated that municipalities typically raise taxes only in dire circumstances.

Tax rates are a clear metric for residents, influencing their decisions on whether to move to or from a municipality. Municipalities must report their tax rates to the Tax Administration by November 18.

In Jyväskylä, local taxes are set to increase next year, as the city council voted to raise the tax rate from its current 8% to 8.1%, despite Mayor Timo Koivisto’s preference to maintain the rate. The increase is expected to generate approximately three million euros for the city. According to the Taxpayers’ Association, the 0.1 percentage point hike means an additional 40 euros annually for someone earning 40,000 euros a year.

Jyväskylä faces budget cuts affecting schools and libraries, with former MP Kauko Tuupainen suggesting that the added tax revenue could be used to save these services. However, Koivisto noted that specific allocation of funds is not feasible at this time, with decisions on spending to be made later in November.

Green Party councillor Leena Lyytinen expressed hope that the additional funds would support early childhood education and basic education, aligning with the mayor’s view that the funds could benefit educational materials.