Taxation of pension

When you retire, you will need to obtain a new tax card for pension, because pension is taxed differently from employment income.

Request the tax card from the Tax Administration as soon as possible after receiving your pension decision. If no tax card for pension is supplied, a withholding tax rate of 40% applies to pension.

Request a tax card from the Tax Administration

  • online at
  • by phone on +358 29 497 050 / Mon–Fri, 9–16.15
  • by visiting a tax office

The documents you will need to provide are the pension decision and information about your income, withholding taxes and deductions since the start of the year.

The Tax Administration will forward the withholding information straight to Keva once you have requested the tax card for pension.

For more information, please see

Refund of excess withheld tax

If your tax card is not supplied in time and tax is withheld from your pension at the rate of 40%, we will refund the excess withheld tax once we are informed of the withholding tax rate calculated for your pension.

The refund can only be made in respect of pensions paid in the current year, however.

After the first year of payment

After your first year of receiving pension, the Tax Administration will annually supply us directly with the withholding information for your pension.

If your pension income or other income changes materially over the course of the year, you should contact the tax office and have your withholding tax rate revised. The Tax Administration will forward your new tax card straight to Keva.

Increasing your tax rate

You can easily increase your personal withholding tax rate either in the online service My Pension or by calling Keva pensions advice.

Notification of pension paid in fiscal year

Each year, you will be sent a letter with information about the pensions paid to you. The same information will also be provided to the Tax Administration. The information in this annual letter helps you check the pension income details recorded in the pre-completed tax return.

The following information appears in the annual letter:

  • how much pension was paid in the previous year
  • the percentage of the index increment
  • how much pension will be paid in January
  • the pension payment dates
  • the amount of withholding

The annual letters to local government, Evangelical Lutheran Church and Kela pensioners will arrive by 31 December and those to State pensioners by 20 January.

Taxation of persons permanently resident abroad

Pension paid from Finland is taxed the same regardless of whether you are permanently resident in Finland or abroad.

The tax rates, deductions and tax return procedure are the same as for Finnish residents. Nationality and any tax treaty between Finland and the State of residence may impact on the amount of your withholding tax, however.

If you reside abroad, we will obtain the withholding information for pension on your behalf when your pension is about to start.