Finland self-employed net income calculator (toiminimi)
Your net income as a Finnish sole trader is business income minus the YEL pension premium of 24.4% of your confirmed YEL income, which is deductible, and then state income tax and municipal tax on what remains.
Worked example: with Annual business income of 50,000, this model computes Net income / year 28,570.74. See the full breakdown.
⚠ Illustrative rates Updated for 2026 · sources checked 2026-08-22
How toiminimi in Finland is calculated
YEL is the number that decides a Finnish entrepreneur’s finances, and it is not simply a percentage of profit. The premium is charged on a confirmed YEL income agreed with your pension company — a figure meant to reflect what your work would cost to hire, floored and capped by statute — and that same figure determines your sickness allowance, parental allowance and eventual pension. Understating it is cheap now and expensive later.
The tax side changed shape in 2023, when the wellbeing services reform moved most of the burden from municipalities to the state. The municipal rate now averages well under 8%, and the progressive state scale carries the rest, which is why comparing Finnish rates to pre-reform figures gives the wrong impression of where the money goes.
Worked example
| Annual business income (EUR) | 50000 |
|---|---|
| Yel Income ✓ | 50000 |
| YEL premium (24.4%) ✓ | 12200 |
| Taxable Income ✓ | 37800 |
| State income tax ✓ | 6367.8 |
| Municipal tax ✓ | 2861.46 |
| Net income / year ✓ | 28570.74 |
Every row is computed by the engine from the inputs above. Rows marked ✓ are additionally pinned by a published self-test vector.
Frequently asked questions
How much is the YEL premium in 2026?
24.4% of confirmed YEL income, which must sit between the statutory floor of 9,423.09 EUR and the ceiling of 214,000 EUR. New entrepreneurs get 22% off the premium for their first four years.
Is YEL based on my actual profit?
No. It is based on a confirmed YEL income agreed with your pension company, which may be higher or lower than your profit. This model uses profit clamped between the statutory limits as a stand-in.
Why is Finnish municipal tax so low now?
The 2023 wellbeing services reform transferred most funding responsibility to the state. The income-weighted average municipal rate is now about 7.57%, with the progressive state scale carrying the rest.
Sources
- Veronmaksajat — Valtion tuloveroasteikko 2026 · checked 2026-08-22
- Elo — YEL 2026: maksuprosentti 24,40 ja työtulon ala- ja ylärajat · checked 2026-08-22
Estimate. Not tax advice. The rates in this calculator are illustrative: they reproduce the shape of the charge through 3 self-test cases, but they are not the official schedule, so the amount shown will not match your bill. Use the official source above for that.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 3 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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