Sole trader (toiminimi) salary calculator - Finland 2026
Free Sole trader (toiminimi) salary calculator for Finland (2026). Estimate gross-to-net take-home pay: income tax, social contributions and net salary. Educational, not tax advice.
by Simon Bodych
Methodology & sources
Methodology - Finland (2026)
Educational model - not the Finnish Tax Administration withholding calculator, not a tax decision, not tax advice.
Employee (tyosopimus)
- State income tax 2026 (Act 1140/2025): 12.64% from the first euro of taxable income, 19% above 22,000, 30.25% above 32,600, 33.25% above 40,100 and 37.5% above 52,100. Since the 2023 health and social services reform the state scale applies nationwide on top of a municipal layer.
- Municipal income tax: a flat percent of taxable income set by each municipality. The default is 7.57%, the tax-revenue-weighted Mainland Finland average for 2026 (Kuntaliitto); you can enter your own municipality's rate.
- Employee social insurance, deducted from pay and tax-deductible: TyEL pension 7.30% (flat for ages 17-68 - the higher 53-62 band ended with the 2017 reform transition in 2026), unemployment insurance 0.89%, and the health insurance daily allowance contribution 0.88% of wage income (0% when annual wage income is under 17,255).
- Health insurance medical care contribution: 1.10% of taxable income, collected with municipal taxation.
- Deductions: the standard work-expense deduction of 750 from wage income and the basic deduction (perusvahennys, max 4,265, tapered at 18%), applied identically in state and municipal taxation.
- Earned income credit (tyotulovahennys) 2026: 18% of work income up to 3,430, reduced by 2% of net earned income between 35,000 and 50,550. The 2026 reform stops the reduction at 50,550, so the credit never falls below 3,119. The age-65+ increase (1,200) and the per-child increase (105 per minor child) are not modelled. The credit is applied against state income tax, municipal tax and the medical care contribution, never below zero.
- Public broadcasting tax (Yle tax): 2.5% of the part of annual income exceeding 15,150, capped at 160.
- Employer cost on top of gross pay: TyEL average employer share 17.10% (average total contribution 24.40% minus the 7.30% employee share), unemployment insurance 0.31% (payroll up to 2,509,500; 1.23% above that is not modelled) and the employer health insurance contribution 1.91%.
- Finland has no statutory minimum wage; minimum pay levels come from generally binding collective agreements.
- Out of scope: church tax (1-2.25% for parish members), commuting and other itemized deductions, the 65+ and per-child credit increases, occupational accident and group life insurance (industry-specific employer cost), holiday bonus and other collective-agreement extras, fringe benefits, capital income, and non-resident taxation at source.
Sources: Finlex - Act 1140/2025 on the 2026 income tax scale, vero.fi - Tax bases for earned income in 2026, Kuntaliitto - Municipal tax rates 2026, Tyoelake.fi - employee pension contribution 7.3% in 2026, Varma - earnings-related pension contributions confirmed for 2026, Tyollisyysrahasto (Employment Fund) - unemployment insurance contributions 2026, STM - health insurance contributions 2026.
Sole trader (toiminimi)
- Net business income = revenue - expenses. After the 5% entrepreneur deduction (yrittajavahennys), the remaining 95% is taxed as earned income through the same 2026 state scale, municipal tax, deductions and earned income credit as wages (business work income qualifies for the credit). The capital income split of business income (based on net business assets) is not modelled.
- YEL pension insurance is charged on your CONFIRMED YEL INCOME, not on actual profit. The calculator takes YEL income as an input that defaults to profit, clamped to the 2026 range 9,423.09 - 214,000. Below the lower limit there is no YEL obligation and the model charges no YEL.
- YEL contribution 2026: 24.4% of YEL income, the same for all ages (the higher 53-62 rate ended in 2026). New entrepreneurs get a 22% discount for the first 48 months - available as a toggle.
- Health insurance for YEL-insured entrepreneurs is levied on YEL income: medical care contribution 1.10% and daily allowance contribution 1.11% (0.23% when annual income is under 17,255). YEL contributions and the daily allowance contribution are tax-deductible.
- Public broadcasting tax (Yle tax): 2.5% of income over 15,150, capped at 160.
- Light entrepreneur (kevytyrittaja): invoicing through a service platform without your own business ID is taxed essentially like the model above - your invoiced income minus the service fee (typically about 3-7%) is wage-like work income, and you must take YEL insurance yourself once your YEL income exceeds the 9,423.09 lower limit. To approximate a light entrepreneur, enter the service fee as an expense.
- Out of scope: the capital-income share of business income, VAT (the registration threshold is 20,000 of annual turnover), spouse split of business income, loss carry-forward, prepayment timing and church tax.
Sources: Elo - YEL insurance 2026, Varma - YEL in 2026, Finnish Centre for Pensions - pension changes in 2026, vero.fi - Tax bases for earned income in 2026, Finlex - Act 1140/2025 on the 2026 income tax scale.