Eurajoki approves significant tax increase as municipal council votes narrowly in Finland

The municipality of Eurajoki has approved a significant tax increase, raising its income tax rate by nearly 20%. The rate will climb from 5.40% to 6.40%, following a narrow vote in the municipal council, which concluded with a tally of 19 votes in favor and 16 against. The conservative party, as well as members from other parties, initially supported maintaining the current rates, but their efforts did not garner enough backing.

Historically, Eurajoki has been one of the lowest taxing municipalities in Finland, with only a few places, such as Kauniainen, Espoo, and Helsinki, having lower municipal income tax rates. Despite the hike, living in Eurajoki will remain relatively affordable, as seven municipalities have an income tax rate of 6.40% or lower this year.

A key driver of Eurajoki’s economic success is the Olkiluoto nuclear power plant, strategically positioned between the larger cities of Pori and Rauma. Current tax rates in Pori stand at 8.40%, with an increase to 8.70% anticipated next year, while Rauma’s income tax is projected to remain at 7.90%. Tax decisions for both cities are set to be made this coming Monday.

Last year, municipal officials had proposed a similar tax increase, but the council rejected it by a slim margin. Additionally, the council on Monday decided to close several small schools in the area, marking the first school closures in Eurajoki since the 1970s.