Local Taxes

MUNICIPAL INCOME TAX

The municipal income tax rate varies from 15% to 20% of taxable earned income, depending on the municipality. Corporate taxable income and capital income received by individuals are not subject to municipal taxation. Municipalities confirm the municipal tax rate annually. The rate in Helsinki in 1996 is 17%.

CHURCH TAX

A church tax varies between 1% and 2% depending on the municipality, is levied on members of the national churches-the Evangelical-Lutheran and Greek Orthodox churches. The rate in Helsinki is 1%. The tax does not apply to corporations or to the capital income of individuals.

SOCIAL SECURITY CONTRIBUTIONS

Employees pay social security contributions on taxable income computed for municipal income tax purposes. See Section E.2, page 35 and Appendix 6, page 82.