Helsinki Residents Pay Least in Municipal Taxes

Residents in Kajaani, in east-central Finland, fork out the most money to the municipal tax office, according to a report by the Taxpayers' Association of Finland. Meanwhile, residents in Helsinki pay the lowest municipal taxes of any major city.

Over half of Finland’s municipalities have increased municipal taxes this year. The average municipal tax rate rose from 18.59 percent to 18.98 percent this year.
The report reviewed municipal, church and property taxes. It found that an average-income family in Kajaani will pay 1,865 more euros in taxes this year than a family in Helsinki.
Nineteen provincial centres were included in the study, which was carried out by Mikael Kirkko-Jaakkola, an economist at the Taxpayers’ Association.
He points out, however, that living expenses are higher in Helsinki.
“If taxes were to go up in Helsinki, it would be even more expensive to live in the capital city,” says Kirkko-Jaakkola.
Hefty Taxes in Kajaani
A family earning an average salary in Kajaani will pay 14,159 euros this year in municipal taxes. Rovaniemi, in Lapland, and Kokkola in western Finland, are the second and third most expensive towns in terms of municipal taxes in Finland. After Helsinki, Turku and Pori, in southwest Finland, levy the least municipal taxes.
When looking at municipal taxes alone, the study found an average-salary family in Kajaani will pay 2.5 percent more than a family earning the same amount in Helsinki. That adds up to 1,622 euros annually. Meanwhile, a middle-income family in Helsinki will pay the most for property tax, or 292 euros. A family earning the same wage will pay the least property tax in Kokkola, or 132 euros.
Property taxes rose from last year in all 19 municipalities reviewed in the study except in Kuopio and Kokkola.
Income tax is highest in Alavieska, in western Finland. There a mid-income family will pay 3,438 euros more in income tax than the same family in Kauniainen, a low-tax enclave located within Espoo's borders.