How will unemployment affect my taxes?


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.

You can apply for a revised tax card for social security benefits from Vero (the Tax Administration). Vero will, on request, send the revised tax card directly to Kela. If you have any questions, please visit your local Kela office. To read more about taxes, click here.

See All Information

You also might like

Can't I just quit my job?

We’ve all been there. We have that job we just don’t want to stay at anymore. Quitting sounds like an easy escape, but it might not be as…

Read More

How can I collect any unpaid salary from my employer?

If your employer has stopped paying you due to bankruptcy or is otherwise insolvent, it is within your rights to apply for pay security. To…

Read More

I have more than one job. Do I need a tax card for each job?

No. Only one tax card is needed and you’ll use that tax card for every job. Your tax card has one income ceiling for all your income during…

Read More