A series of tax and price changes will come into force across Finland from 1 January 2026, affecting consumer costs, income taxation, and social support.
Tobacco, nicotine products, and alcohol will become more expensive, while minor relief is expected in food, fuel, and medical costs. The government has also introduced inheritance tax reforms and ended tax deductions for union dues.
Consumer price increases
Taxes on nicotine pouches will rise by around 37 percent, pushing the price of a standard container from €5 to around €7. A pack of cigarettes will increase to €11.50, with more than 90 percent of the price now consisting of tax. The tobacco tax will continue to rise every six months until mid-2027.
Taxes on alcoholic beverages such as wine, cider, and beer will rise by an average of 9 percent. A 0.75-litre bottle of wine with 12 percent alcohol content will now retail for around €10, with over half of that due to tax.
Soft drinks and energy drinks will also be more expensive from April. A sugar-based tiered tax system will raise the rate from the current €0.13–0.32 per litre to €0.20–0.59 per litre, depending on sugar content.
Fuel, food, and medicine slightly cheaper
In contrast, excise duties on liquid fuels will fall by 2.7 cents per litre for petrol and 2.4 cents for diesel. The retail price of 95 E10 petrol is expected to settle at €1.66 per litre, with diesel at €1.62, although global oil markets remain the main factor in pricing.
The reduced VAT rate on food, medicines, public transport, and restaurant services will drop from 14 percent to 13.5 percent. However, this change is expected to lower prices only by a few cents per purchase. A €50 grocery bill may fall by €0.22, assuming full pass-through to prices.
Tax cuts and union deduction removal
Income tax rates will be cut, mainly benefiting high earners. For those earning over €8,000 per month, the net annual gain ranges between €50 and €190. For those earning €10,000 monthly, the benefit is close to €2,000 annually.
The tax deductibility of trade union membership fees will end. The effect is estimated at €100–€300 per year, depending on salary and union. Unemployment fund fees will remain deductible.
Other changes include the cancellation of tax benefits for home office deductions and employer-provided bicycles. The unemployment insurance contribution will increase from 0.59 percent to 0.89 percent.
Social support and healthcare costs
The basic rate of social assistance will be reduced by 3 percent for single adults and those living with parents, and by 2 percent for others. A single adult may lose around €18 per month. A monthly €150 earnings disregard will be removed, and small grants or support payments will now reduce the benefit in full.
Healthcare fees will rise. The maximum per-visit charge in primary care will increase from €28.20 to €30.20. The annual cap on patient fees will rise from €762 to €815. Charges for missed appointments will increase from €56.70 to €73.70.
Family and inheritance policy changes
The maternity grant will rise from €170 to €210 from April. Those who receive the earlier version will be paid a €40 supplement. The cash option will also rise to €210.
Inheritance tax will now apply only to shares above €30,000, up from €20,000. The threshold for tax-free gifts over three years will rise from €5,000 to €7,500. Both changes are expected to reduce the tax burden on family wealth transfers. The maximum inheritance tax saving is estimated at €700.
Crypto regulation expanded
Finnish cryptocurrency exchanges will now be required to report customer data to the tax authority annually. The government expects the measure to increase tax revenues by €20–€50 million. The aim is to close the gap between declared and undeclared income from digital assets.
OP Bank customer bonuses taxed
OP Financial Group’s customer bonuses will now be subject to capital gains tax. This includes bonuses used for insurance premiums and housing loans. Bonuses earned from car leasing or risk life insurance are not affected. The bank has announced plans to increase bonus payouts to compensate for the tax change.
HT