Usually the information on the tax card is correct, but sometimes the tax card needs to be ordered at a higher tax rate. A higher tax rate is necessary when income is too high in relation to your own tax rate. It is therefore worth reviewing revenues at certain intervals so that the residual tax does not come as a surprise.
After a change of job or a salary increase, income can change a lot. It is important to review the tax rate whenever income changes. Changing jobs, terminating employment, and retirement are all cases where reviewing a tax card is really important.
If necessary, order a new tax card
The income reported on the tax card must correspond to reality. This will ensure that the tax rate is correct. The tax rate is always calculated based on the previous year’s income, so it’s important to check your income data is up to date. It is a good idea to check the tax rate at least twice a year so that you still have time to make the necessary changes to the tax rate. A new tax card can be conveniently ordered through the Tax service.
Important tax dates
The first due date of the residual tax is 3.8 and the following due dates are usually at the beginning of the month. If there are two payment dates, the second payment date is two months after the first payment date.
- The tax administration reminds employees to check their own tax rate and, if necessary, make a change tax card in Tax for the rest of the year.
- If the tax rate is too low, earnings for the rest of the year will be taxed at the additional rate. The tax rate is determined on the basis of income and deductions for the whole year.
- It is worth checking your own annual income limit, especially if there has been a clear change in your own salary income or deductions from income, a leading tax expert from the Tax Administration, in a press release.
- It is advisable to make a tax card electronically in the Tax Administration’s Tax service. Here you can view detailed advice from the tax administration on how to apply for a new tax card. It can also be done at a telephone service or tax office.
Use the Tax Card
In order to make a tax card, the employee must always find out in advance the income and taxes accrued since the beginning of the year, an estimate of the income for the whole year and information on possible deductions, such as travel expenses and household deductions. Also make use of the business calculator now.
In Tax, you can already report deductions for this year, which will also affect the tax rate. For example, a household deduction or travel expenses can be declared for taxation as soon as the expenses have been paid.
Taxes can go up to hundreds of euros more
The tax card reform has surprised some Finns and even hundreds of thousands are threatened with exceeding the income limit towards the end of the year. Then taxes would go by an additional percentage. A quarter have previously used only one income limit on their tax card.