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

As of 1 January 2026, the tax-free threshold is 30,000 €. It applies to each heir's own inheritance share: shares 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

As of 1 January 2026, the tax-free threshold for inheritance in Finland is 30,000 euros: inheritance shares below this amount are not taxed. Above the threshold, the amount of tax depends on the tax class and the size of each heir's own share.

Updated 7 July 2026 · Reading time approx. 9 minutes · Source: Inheritance and Gift Tax Act 378/1940

Written by Rasmus Nykänen Lawyer

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
Household goods: tax-free value raised from 4,000 euros to 7,500 euros
Interest on extended payment time: the margin was lowered from 3.5 to 2 percentage points above the Bank of Finland reference rate, making the interest 4.5 % in 2026 (the late-payment interest on inheritance tax in 2026 is likewise 4.5 %)

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; Tax Class II rates are considerably 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:

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).

Note on reading the table: No tax is payable on inheritance shares 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.

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 pays no inheritance tax when the inherited share is less than 120,000 euros (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 pays no inheritance tax when the inherited share is less than 90,000 euros. Like the spouse deduction, it is granted without a separate claim.

Right of possession deduction (hallintaoikeusvähennys)

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 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 processing time varies case by case (often several months, sometimes up to about a year)
Payment of tax: the due dates are stated in the tax decision (the first instalment generally falls roughly three months after the decision, the second a couple of months later)

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 estate inventory deed is the basis for taxation

Inheritance tax is 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) identifies all heirs, that is, the persons to whom inheritance tax is assessed. Under Chapter 20, Section 5 of the Code of Inheritance, an extract from church records or the population information system showing the surviving spouse and the heirs must be attached to the deed. The certificates do not, however, need to be enclosed with the copy filed with the Tax Administration (vero.fi): in practice, the genealogy report is needed for the estate inventory itself, for banks and for the DVV confirmation of the estate's parties.

Note: An incomplete genealogy report delays the estate inventory and thereby the assessment of inheritance tax. If the deed is filed with the Tax Administration after the one-month deadline, a late-filing penalty (50 euros for a natural person) may be imposed as soon as the deadline is missed; a delay of more than 60 days can instead lead to a tax increase.

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. A larger number of heirs therefore means smaller individual tax amounts, as Example 3 above shows.

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, for example to the renouncing heir's own children. Whether and how to renounce is a legal and tax matter; consult a professional about your own situation.

Frequently asked questions about inheritance tax 2026

A cohabiting partner does not receive the spouse deduction (90,000 euros) in the same way as a married spouse. When assessing the need for and amount of the maintenance grant that determines a cohabiting partner's tax class, the 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) can affect the housing allowance for pensioners, where assets are taken into account in the calculation. In the general housing allowance, assets do not have a similar effect. 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.