The 2026 budget proposal reduces corporate income tax and CO₂-based fuel taxes, while strengthening crypto-asset reporting requirements, adjusting VAT rules, and increasing taxes on vehicles, tobacco, alcohol, and soft drinks.
Finland’s parliament concluded its deliberations and voting on the 2026 Budget on 19 December 2025. The key tax measures, including the reduced corporate tax rates and the 2026 income tax schedule, have been adopted.
The single reading of the 2026 Budget began with a general debate on the full budget proposal on 15 December 2025 and continued through 19 December 2025.
Corporate Tax and Business Incentives
The 2026 budget proposes reducing the corporate tax rate to 18% from 2027 to stimulate entrepreneurship. Continued public investment is planned in transport infrastructure, skills development, and innovation, with the most significant funding increases directed at accelerating business-led research and development.
Consumption Taxes and Purchasing Power
To support household purchasing power, the standard VAT rate on commodities will be reduced from 14% to 13.5%.
Excise Duties
The budget raises excise duties on wine and other fermented beverages. Excise duties on alcoholic drinks will also be indexed, reflecting earlier increases on strong alcoholic beverages.
Environmental, Crypto, and Sector-Specific Measures
Key measures include the introduction of DAC8 crypto-asset reporting requirements, reductions in CO2-related fuel taxes, and higher taxes on vehicles and tobacco.
Personal Income Tax Changes
Amendments to individual income tax rates will take effect from 1 January 2026. The national personal income tax is progressive, with higher rates applying as income increases. Income up to EUR 22,000 is taxed at the lowest marginal rate, while higher income bands are taxed at rates ranging from 19% to 37.5%.
Earlier, Finland’s government presented the 2026 budget proposal (HE 99/2025) to the parliament on 22 September 2025.
