Taxation of the sickness allowance

The sickness allowance is taxable income. Even if the allowance is lower than the wage, the rate of tax may not necessarily be lower. The reason for this is that it is not possible to make the same tax deductions from the allowance as from the salary

Tax rate

The sickness allowance is usually taxed at the same rate as your salary. If your salary is taxed at 25% or less, the tax rate on the sickness allowance is 25%, except if you apply for a revised tax card.

Tax card

It is usually not necessary to send the tax card to Kela. The Tax Administration provides Kela with the tax prepayment details for basic tax cards.

If you have a tax-at-source card you must yourself send the tax card to Kela. Tax-at-source cards are used by persons who live abroad or who move to Finland from another country.

Unless you provide Kela with a new revised tax card at the turn of the year, the withholding rate for the previous year is used in January.

When to ask for a revised tax card

If you think that you may be paying too little or too much tax on your allowance, use this calculator to check your tax rate.

If necessary, you can apply for a revised tax card for social security purposes. With a revised tax card, the withholding rate can be less than 25%.

The Tax Administration will send the revised tax card directly to Kela at your request.