How much inheritance tax do you pay in Finland 2026?

Inheritances below 30,000 € are tax-free. Above this threshold, Tax Class I (close relatives) pays 7–19% and Tax Class II (others) pays 19–33%, depending on the amount inherited. The rate is progressive with five brackets.

What is the tax-free threshold for inheritance in Finland?

As of 1 January 2026, the tax-free threshold is 30,000 €. Inheritances below this amount are not taxed. The threshold was raised from 20,000 € at the beginning of 2026.

What deductions are available for inheritance tax in Finland?

The surviving spouse can deduct 90,000 € and minor children can deduct 60,000 € from their taxable inheritance. Additionally, the right of possession (hallintaoikeus) can significantly reduce the taxable value.

Inheritance tax · Taxation

Inheritance tax in Finland 2026 — rates, classes and calculator

From the beginning of 2026, Finnish inheritance taxation changed significantly: the tax-free threshold rose from 20,000 to 30,000 euros. This article covers the content of the reform, how to calculate the tax by tax class, and the role of the genealogy report as a prerequisite for inheritance taxation.

Updated March 2026 · Reading time approx. 9 minutes · Source: Inheritance and Gift Tax Act 378/1940

Written by Rasmus Nykänen Bachelor of Laws (ON)

In brief: Inheritance tax is only payable if the inherited share is at least 30,000 euros (from 1 January 2026; previously 20,000 euros). The tax is calculated progressively according to the tax class. The estate inventory deed (perukirja) is the basis for inheritance taxation. The deed cannot be accepted without a genealogy report (Code of Inheritance, Chapter 20, Section 3).

What changed on 1 January 2026?

The amendment to the Inheritance and Gift Tax Act entered into force on 1 January 2026 (Government Bill HE 94/2025). The key changes to inheritance taxation:

Tax-free threshold raised from 20,000 euros to 30,000 euros
Tax-free value of household goods raised from 4,000 euros to 7,500 euros
Late payment interest on inheritance tax reduced: the interest margin for extended payment periods was lowered from 3.5% to 2%
Generational relief expanded: a minor heir can now receive business generational relief (Section 55 of the Inheritance and Gift Tax Act) when a guardian continues the business on their behalf

The change applies to all deaths where the deceased died on or after 1 January 2026. If the deceased died in 2025 or earlier, the previous tax rules apply.

Note: The applicable tax table is determined by the date of death, not the date of the estate inventory or the distribution of the inheritance.

Inheritance tax classes 2026

All beneficiaries belong to one of two tax classes based on their relationship to the deceased. The tax class directly affects the amount of tax. Tax Class II rates are significantly higher.

Tax Class I — closest relatives

Spouse and registered partner
Children, grandchildren and other direct descendants
Parents, grandparents and other direct ancestors
Spouse's children and their descendants
Cohabiting partner or fiancé(e) — in Tax Class I up to the amount of the maintenance grant under Chapter 8, Section 2 of the Code of Inheritance (Section 11 of the Inheritance and Gift Tax Act). For cohabiting partners, the conditions under the Act on the Dissolution of the Household of Cohabiting Partners (26/2011) must be met.
Adopted children and adoptive parents (treated equally with biological relatives)

Tax Class II — others

Siblings and their descendants
Parents' siblings (aunts, uncles) and their descendants
Cohabiting partner in general (unless qualifying for Tax Class I)
Friends, acquaintances and other non-relatives

Inheritance tax rates 2026

The tax is calculated according to a progressive bracket system. Below are the applicable tables (date of death on or after 1 January 2026):

Inherited share	Base tax	Marginal rate
Tax Class I (close relatives)
30,000 – 40,000 €	100 €	7 %
40,000 – 60,000 €	800 €	10 %
60,000 – 200,000 €	2,800 €	13 %
200,000 – 1,000,000 €	21,000 €	16 %
Over 1,000,000 €	149,000 €	19 %
Tax Class II (other relatives and non-relatives)
30,000 – 40,000 €	100 €	19 %
40,000 – 60,000 €	2,000 €	25 %
60,000 – 200,000 €	7,000 €	29 %
200,000 – 1,000,000 €	47,600 €	31 %
Over 1,000,000 €	295,600 €	33 %

Source: Inheritance and Gift Tax Act (378/1940, as amended by Act 22.12.2025/1349). The table applies to deaths on or after 1 January 2026.

Note on reading the table: No tax is payable on inheritances below 30,000 euros. Once the threshold is exceeded, tax is calculated on the entire taxable share, not only on the amount exceeding 30,000 euros. This is already accounted for in the base tax amounts in the table.

Inheritance tax calculator 2026

Enter your inheritance share and select a tax class. The calculator computes the tax automatically based on the 2026 rates.

Inheritance share (€)

Tax class

Class I
spouse, children, parents

Class II
siblings, others

Deductions

Spouse deduction (−90,000 €) Minor child deduction (−60,000 €)

The calculator provides an indicative estimate. The final tax may differ due to right-of-possession deductions or other special circumstances. Source: Inheritance and Gift Tax Act 378/1940, as amended by Act 22.12.2025/1349.

Practical calculation examples

Example 1 — A child inherits 80,000 euros

Tax class: I (child)

Bracket: 60,000 – 200,000 euros

Base tax: 2,800 euros

Amount exceeding bracket floor: 80,000 – 60,000 = 20,000 euros
Tax on excess: 13% x 20,000 = 2,600 euros

Total inheritance tax: 2,800 + 2,600 = 5,400 euros

Example 2 — A sibling inherits 50,000 euros

Tax class: II (sibling)

Bracket: 40,000 – 60,000 euros

Base tax: 2,000 euros

Amount exceeding bracket floor: 50,000 – 40,000 = 10,000 euros
Tax on excess: 25% x 10,000 = 2,500 euros

Total inheritance tax: 2,000 + 2,500 = 4,500 euros

Example 3 — Two children, estate of 200,000 euros

Each child inherits 100,000 euros (half of the estate)

Tax class: I (children)

Bracket: 60,000 – 200,000 euros

Base tax: 2,800 euros

Amount exceeding bracket floor: 100,000 – 60,000 = 40,000 euros
Tax on excess: 13% x 40,000 = 5,200 euros

Each child's inheritance tax: 8,000 euros (total 16,000 euros)

Deductions that reduce tax

Spouse deduction — 90,000 euros

The surviving spouse can deduct 90,000 euros from their inherited share before the tax is calculated. In practice, a spouse can inherit up to 120,000 euros free of inheritance tax (90,000 euro deduction + 30,000 euro tax-free threshold). The spouse deduction is granted automatically and does not need to be separately claimed.

Minor child deduction — 60,000 euros

A direct descendant of the deceased who was closest in the order of succession to inherit the deceased and who had not reached 18 years of age at the time of death receives a 60,000 euro deduction. In practice, a minor child can inherit up to 90,000 euros free of inheritance tax. The deduction is granted automatically.

Right of possession deduction (hallintaoikeusvahennys)

If the surviving spouse or another beneficiary under a will retains the right of possession (hallintaoikeus) over a dwelling or other property, this reduces the taxable inherited share of the other heirs. The value of the right of possession is calculated based on the age of the holder and the value of the property: the younger the holder, the larger the deduction.

Debts and estate inventory costs

The deceased's debts are deducted from the estate's assets before the tax is calculated. Deductible items include, among others, mortgage debt, credit card debt, unpaid invoices, and funeral and estate inventory costs.

How is inheritance tax paid?

The Tax Administration sends each beneficiary a personal inheritance tax decision. The decision is based on the estate inventory deed (perukirja) that the estate has submitted to the Tax Administration.

The process follows this timeline:

Estate inventory — must be completed within 3 months of death
Estate inventory deed submitted to the Tax Administration — within one month of the estate inventory (Section 29 of the Inheritance and Gift Tax Act)
Tax decision — the Tax Administration typically processes the deed within 6 to 12 months
Payment of tax — the first instalment is due approximately 3 months after the tax decision, the second instalment approximately 2 months after the first due date

Inheritance tax below 500 euros is paid in a single instalment. Tax of 500 euros or more is automatically divided into two instalments. The taxpayer can apply to the Tax Administration for extended payment time if necessary. The interest on extended payment time from the beginning of 2026 is the Bank of Finland reference rate + 2 percentage points (previously + 3.5 percentage points).

The estate inventory deed is the basis for taxation — and the genealogy report its mandatory attachment

Inheritance tax is always calculated based on the information in the estate inventory deed (perukirja). The deed declares the deceased's assets and debts as well as all heirs. Without the estate inventory deed, the Tax Administration cannot assess inheritance tax.

The genealogy report (sukuselvitys) is a mandatory attachment to the estate inventory deed (Code of Inheritance, Chapter 20, Section 3). It identifies all heirs — that is, the persons to whom inheritance tax is assessed. If the genealogy report is incomplete or missing, the estate inventory deed cannot be accepted.

Note: An incomplete genealogy report delays the assessment of inheritance tax. The Tax Administration may request additional information, which extends the processing time and may lead to late fees if submission of the estate inventory deed is delayed beyond one month.

Special situations where inheritance tax may be lower than expected

Inheritance is divided among multiple heirs

Inheritance tax is calculated separately on each heir's own share — not on the total value of the estate. For a 200,000 euro estate with two children, each child pays tax on their 100,000 euro share — neither pays tax on 200,000 euros. A larger number of heirs therefore means smaller individual tax amounts.

Right of possession over a dwelling for the surviving spouse

If the surviving spouse receives the right of possession (hallintaoikeus) over a dwelling, the taxable inherited share of the other heirs is reduced by the value of the right of possession. This arrangement can thus reduce the heirs' taxable inheritance without specific tax planning.

Renouncing an inheritance

An heir may renounce their inheritance entirely. The renunciation must be made in writing before the inheritance is accepted. The renounced inheritance passes to the next heir in the order of succession — and in this way, the inheritance can for example be transferred directly to grandchildren, skipping one generation of taxation.

Frequently asked questions about inheritance tax 2026

Inherited shares below 30,000 euros are not taxed at all. Tax on the amount exceeding 30,000 euros is calculated progressively: Tax Class I 7–19%, Tax Class II 19–33%, depending on the size of the inheritance.

Spouse, children and grandchildren, parents and grandparents, spouse's children, and a cohabiting partner or fiancé(e) up to the amount of the maintenance grant under Chapter 8, Section 2 of the Code of Inheritance (Section 11 of the Inheritance and Gift Tax Act). Adopted children are treated equally with biological children.

A cohabiting partner does not receive the spouse deduction (90,000 euros) in the same way as a married spouse. A cohabiting partner belongs to Tax Class I only up to the amount for which they are entitled to a maintenance grant under Chapter 8, Section 2 of the Code of Inheritance — that is, to the extent necessary to secure their livelihood due to the deceased's death. When assessing the need and amount, the cohabiting partner's age, the duration of the relationship, assets and income are taken into account. The spouse deduction may exceptionally be granted to a cohabiting partner if they were treated as a spouse in income taxation for the year of death. A cohabiting partner does not inherit by operation of law without a will.

An inheritance does not affect housing allowance as income — it is not counted among the monthly income considered for housing allowance. However, assets accumulated through an inheritance (such as deposits, shares or real estate) are taken into account as assets when calculating housing allowance, and sufficiently large assets may reduce or prevent housing allowance entirely. An undivided estate share does not affect housing allowance. An inheritance does not affect student financial aid. In basic social assistance, an inheritance may be taken into account as both income and assets to the extent it is actually available when social assistance is granted.

The genealogy report is a mandatory attachment to the estate inventory deed under the Code of Inheritance. It identifies all heirs to whom inheritance tax is assessed. Without a genealogy report, the estate inventory deed cannot be submitted to the Tax Administration — and inheritance tax cannot be assessed.

Good to know: both the service fee and government fees are tax-deductible

A professional orders all required certificates and verifies the complete document set on your behalf. The €79 service fee and government fees can be deducted as estate expenses.

Order genealogy report — 79 €