Finland has published Law 873/2026 in its Official Gazette, amending the Income Tax Act for individual taxpayers, with most provisions applying from the start of the 2026 tax year.
Finland has enacted Law 873/2026 of 9 October 2026, which amends and temporarily amends the Income Tax Act. The law takes effect on 13 October 2026, but most of its provisions apply retroactively from 1 January 2026.
The amendments cover employee sports and culture benefits, commuting expense deductions and the household tax credit. President Alexander Stubb and Minister of Finance Riikka Purra signed the law.
Employee sports and culture benefits
Under Section 69, employers may provide tax-exempt benefits of up to EUR 540 a year for an employee’s self-directed sports or cultural activities. The benefit must be for the employee’s personal use only. The provision applies from the 2026 tax year.
Sports activity covers physical activities that promote fitness, health and well-being. This includes active outdoor hobbies, essential exercise support services and equipment rental, even where the exercise itself is free.
Cultural activity covers visits to museums, theatres, opera, cinemas, concerts, art exhibitions and science centres. It also includes sports events, guided functional art courses, sports and art fairs, and real-time online participation.
Commuting expense deductions
Section 93 temporarily changes the deduction for travel between home and work for the 2026 tax year. Costs are deductible on the basis of the cheapest mode of transport, up to a maximum of EUR 7,000, subject to an own-risk threshold of EUR 800.
The threshold is reduced by EUR 75 for each full month in which the taxpayer receives certain social benefits. These include earnings-related unemployment daily allowance, labour market support, general support allowance and pregnancy or parental allowance. Whatever the reductions, the threshold cannot fall below EUR 150.
The section is valid temporarily until 31 December 2026 and applies to 2026 taxation.
Household tax credit
Section 127 f sets exceptions to the household tax credit for the 2026 and 2027 tax years. It applies to qualifying work paid for on or after 1 January 2026. The maximum total credit is EUR 3,500 a year. Within that limit, deductions for standard household work, other than abandoning oil heating, are capped at EUR 2,100.
For standard household and care work, the credit is as follows:
- Direct payroll: employer indirect social security and insurance contributions plus 15% of wages paid.
- Contract work: 40% of the compensation paid to a registered contractor or non-profit organisation.
For work to replace oil heating, the credit is as follows:
- Direct payroll: employer indirect contributions plus 30% of wages paid.
- Contract work: 60% of the compensation paid to a registered contractor.
To qualify, the work must involve converting a system to remove building-specific oil heating and replace it with a non-fossil heating system.
