Taxation of the special care allowance

The special care allowance is taxable income. Even though the allowance is lower than the salary, the rate at which it is taxed is not necessarily 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 withholding tax rate on the special care allowance is usually the same as the rate you pay on 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. Kela gets basic tax card details directly from the Tax Administration.

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

The previous year's tax card is used in January unless you provide a revised tax card to Kela.

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. 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.