Finland's government submitted a bill to Parliament on 11 June 2026 proposing retroactive changes to the Income Tax Act for 2026, including a temporary rise in the household services credit to EUR 2,100, an increase in the tax-exempt employer activity benefit to EUR 540 with new coverage for fishing and hunting, and a lower commuting expense deduction threshold of EUR 800.
Finland’s Ministry of Finance has announced that the government has submitted a proposal on 11 June 2026 to Parliament to amend the Income Tax Act. The changes concerning individuals are intended to take effect retroactively from the beginning of 2026.
The proposal is aimed at amending the Income Tax Act to stimulate the economy and support citizens.
Key measures include a temporary increase in the maximum household tax credit to EUR 2,100 for 2026 and 2027, along with higher deduction percentages for labour costs. The legislation also proposes raising the tax-free limit for employer-provided exercise and culture benefits to EUR 540 euros while expanding eligible activities to include nature-based hobbies like fishing and hunting.
Household services credit
The proposed amendments aim to stimulate demand for services and revitalise the construction sector.
- Increased maximum: For 2026 and 2027, the maximum credit for standard household work and renovations will rise from EUR 1,600 to EUR 2,100.
- Higher credit rates:
- The rate for services purchased from companies will increase from 35% to 40%.
- The rate for wages paid directly will rise from 13% to 15%.
- Accessibility: Because of the higher credit rate, the effective threshold for receiving the credit (after the EUR 150 deductible) drops. For example, a single person buying company services will begin to benefit once the labour cost exceeds EUR 375, down from the previous EUR 428.57.
- Oil heating exception: The existing increased credit for removing oil heating (maximum EUR 3,500 with a 60% credit rate) remains unchanged through 2027.
Employer-provided activity benefits
This amendment adjusts the benefit to account for inflation since 2009 and clarifies the definition of sports activities. The maximum tax-exempt value for voluntary sports and cultural activities will increase from EUR 400 to EUR 540 per year. The benefit will now include nature-based activities such as fishing and hunting.
Under the new definition, the benefit can cover fishing and hunting licenses (such as the fisheries management fee), guide services, and the rental of sports equipment (e.g., bicycles or canoes) even if the activity itself is free.
The benefit remains personal and cannot be used for others (e.g., family members), nor can it cover purely wellness services like massage or mindfulness, or the repair of sports equipment.
Commuting expense threshold
The government is introducing temporary tax relief on commuting costs to support workers affected by high fuel prices due to international instability.
For the 2026 tax year, the deductible threshold will be lowered from EUR 900 to EUR 800. For unemployed individuals or those on family leave, the monthly reduction is adjusted to EUR 75 (previously EUR 80), with a minimum threshold of EUR 150. The maximum deductible amount remains unchanged at EUR 7,000.
Implementation
These changes are intended to apply to the entire 2026 tax year, meaning costs incurred as early as 1 January 2026 are eligible.
The Tax Administration will not automatically recalculate tax cards. To see the benefit in their monthly take-home pay during 2026, taxpayers must apply for a revised tax card. Otherwise, the benefit will be realised as a tax refund or reduced back tax in the summer or autumn of 2027.
