Income subject to state taxation

The information is based on data in the tax files of the National Board of Inland Revenue concerning income subject to state taxation.

Average income refers to income calculated per income earner. Median income generally provides a better picture of the income level within a certain group. Median income indicates the amount of income that divides income earners into two groups of equal size. One half of the income earners have lower, and one half higher, incomes than the median.

Net income means income obtained by subtracting taxes from income subject to state taxation (income tax, wealth tax, punitive tax increase, municipal tax, church tax, social security contributions and forestry levies).

Income subject to state taxation is divided into the following categories according to source:

1. Wage income:
wages and salaries subject to preliminary collection of taxes, wages and salaries from work at sea, reimbursements of expenses by employer, holiday pay in building and construction, wages and salaries to reservists, income from abroad taxed in Finland, value of purchased services in forestry, value of purchased services in partnerships, redemptions, service charges and other income subject to advance payment of taxes

2. Entrepreneurial income:
earned income and capital income in agriculture and forestry, earned income and capital income in trade and business, income from partnerships

3. Other income subject to state taxation:
other earned income, pension income, unemployment benefits and other social security benefits.

A person's earned income consists of his or her entrepreneurial income and wage and salary earnings. Income subject to state taxation does not include scholarships and grants received from public corporations for studies or research, earned income from abroad if the person has worked abroad for at least six months, part of the social security benefits received from the public sector and tax-exempt interest income.

Statistics Finland's annual publication "Statistics on income and property" contains descriptions of the different types of income.