Taxation of unemployment benefits
Unemployment benefits are taxable income, and a preliminary tax of 20% is withheld on them.
Even if the unemployment 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.
- If you have incidental or part-time earnings while unemployed, you should check the preliminary tax withholding rate using the calculator application at Tax percentage calculator (Tax Adminstration)
Revised tax card for social security benefits
- If necessary, you can apply for a revised tax card for social security benefits from Tax Administration. The Tax Administration will, on request, send the revised tax card directly to Kela.