Taxation of pension

Since pension is taxed differently from employment income, you need a different tax card for each pension type.

When you retire or begin to receive survivors’ pension, you need a different tax card for each pension – you can request a tax card for pension from the Finnish Tax Administration.

We cannot pay out pension as indicated in the tax card for employment income. If no tax card for pension is supplied, a withholding tax rate of 40% applies to pension.

Request a tax card for pension from the Tax Administration

Request a tax card for pension income from the Tax Administration when your employer has paid out all your salaries, wages and holiday pays until the beginning of your pension.

Request a tax card as follows:

  • Visit the MyTax service at
    • Details on new pensions are already included in the tax card application for most of our customers.
    • Some customers will also obtain a proposal for a tax card from the Tax Administration.
    • Accept your tax card or request one according to MyTax instructions.
  • If you cannot use MyTax, read instructions in page (

The Tax Administration will forward the tax card in electronic format directly to Keva.

For more information on taxation of pension and detailed instructions on how to request a tax card, visit the website of the Tax Administration:

Refund of excess withheld tax

If your tax card is not supplied before the first date of pension payment, tax is withheld from your pension at the rate of 40%.

We will refund any excess withheld tax once we have received your tax card for pension. The refund can only be made in respect of pensions paid out in the current year, however. If your tax card does not reach us by the end of the year, the Tax Administration will adjust your tax rate in the final taxation.

Taxation of rehabilitation allowance and rehabilitation increment

Rehabilitation allowance and rehabilitation increment are taxable income, and you should request a separate tax card for them from the Tax Administration.

  • If you receive rehabilitation allowance, request a tax card for social benefits.
  • If you receive cash rehabilitation benefit and rehabilitation increment, request a tax card for pension.
    • If you retrieve your tax card from the MyTax service, choose both ‘Cash rehabilitation benefit’ and ‘Rehabilitation increment’ as pension type.
    • If you request a tax card from the Tax Administration by phone, request an additional mention of rehabilitation increment in your tax card for pension.

If you send Keva your tax card for employment income, we will deduct a rate of at least 25% from your rehabilitation allowance. If you do not send any tax card at all, we will deduct a rate of 20–50% according to the decision issued by the Tax Administration. The amount of withholding tax depends on the amount of rehabilitation benefit. A rate of 40% will be deducted from your rehabilitation increment if there is no mention of rehabilitation increment in your tax card for pension (instruction by the Tax Administration).

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. Thus, you do not need to send you tax card separately to Keva.

If your pension income or other income changes significantly over the course of the year, you should contact the Tax Administration and have your withholding tax rate revised. The Tax Administration will forward your new tax card directly 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’s pensions advice.

If you wish that the increase takes effect on the following pension payment date, the new tax rate needs to be supplied to Keva at least two weeks before the next pension payment date. All changes that take effect in January need to be reported to Keva at least a month before the pension payment date.

Annual letter – notification of pension amounts paid out in tax year

You will annually receive a letter indicating the pensions paid out to you. The same information will be transferred to the Tax Administration. With the information included in the annual letter, you can verify your pension income indicated in the pre-completed tax return.

The annual letter contains information, such as:

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

The annual letters to local government, Evangelical Lutheran Church and Kela pension recipients will be sent in the second half of December. The letters sent by post will arrive by the pension payment date in January.

The annual letters to State pensioners will be sent at the beginning of January. Letters sent by post will arrive by the payment date of State pensions.

If you wish to receive the annual letter as fast as possible, subscribe to the paperless service and electronic notifications in the My Pension service. Consequently, you will receive a notification immediately when the annual letter is available in the My Pension service, and you do not need to wait for the post to arrive.

Annual letter available in the My Pension service

All pension recipients, including those who receive their letter by post, can read the annual letter in electronic format in the My Pension service.

You will find the annual letter in the My Pension service under the heading ‘Omat asiakirjat’ (My documents).

Subscribe to our paperless service and electronic notifications in order to receive your documents faster and save the environment.

Three easy steps to the paperless service:

  1. Login to the My Pension service and verify that your email address and telephone number are up to date.
  2. Subscribe to the paperless service.
  3. Subscribe to electronic notifications and receive them by email and/or text message.

Pension taxation of persons permanently resident abroad

Pension paid out 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 tax treaty between Finland and the State of residence may have an impact on the amount of your withholding tax, however.

If you have resided abroad for more than three years (year of moving + three years), Keva will obtain the withholding information for pension on your behalf when your pension is about to begin.