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Inheritance Tax 2026 — How Much Is Paid and When

Guide · Updated 26 April 2026

A clear guide to how inheritance tax is determined, tax classes, deadlines, and common deductions. The exact amount is calculated using the Verohallinto calculator, but this page explains what you will see there and why.

In brief An inheritance share under 20 000 € is tax-free. Above that, the tax is progressive: tax class 1 (close relatives) ~7–19 %, tax class 2 (more distant relatives and unmarried partners) ~19–33 %. Inheritance tax return within 9 months of death. Tax is paid in 1–2 instalments according to the Verohallinto decision.

Tax-Free Threshold: 20 000 €

If your inheritance share is under 20 000 €, you pay no inheritance tax at all. The threshold applies per heir, not per estate — each heir calculates their own share separately.

Example The deceased has four children and an estate of 60 000 € (no debts). Each child inherits 15 000 €. Because each share is under 20 000 €, no one pays inheritance tax.

Tax Classes 1 and 2

Tax Class 1 (lower tax rates)

Spouse in a marriage or registered partnership
Children, grandchildren (direct descendants)
Parents, grandparents (direct ascendants)
Unmarried partner, if the couple has or has had a child together (Tuloverolaki § 7)

Tax Class 2 (higher tax rates)

Siblings and their descendants
Uncles, aunts, and their children
Unmarried partner in general (if no child in common)
All other heirs and legatees

Tax class 2 levies approximately 1.5–2 times more than class 1 on the same inheritance share. In larger estates this makes a difference of thousands of euros.

How the Tax Is Calculated

Debts and deductions are first subtracted from the inheritance share, then the progressive tax scale is applied. The most common deductions:

Spouse deduction: 90 000 € from the inheritance share of a widowed spouse
Minor deduction: 60 000 € if the heir is a minor direct descendant of the deceased
Funeral expenses: reasonable costs are deducted from the estate before distribution
Debts: debts at the date of death are deducted from the estate assets

Use the Verohallinto Calculator

The exact tax amount is calculated using the Verohallinto inheritance tax calculator. Enter the gross inheritance share, deductions and tax class — you get the exact euro amount.

vero.fi/perintoverotus →

Timeline — 9-Month Deadline

Month 0: death. Starts the deadline count.
Month 3 (statutory): estate inventory must be completed under Perintökaari 20:9 §.
Month 4: estate inventory submitted to Verohallinto (1 month after the inventory).
Months 4–8: Verohallinto processes the case and sends the tax decision.
Month 9 (statutory): inheritance tax return filed, if not already with Verohallinto.
Months 9–12: first tax instalment falls due. Second instalment falls due approximately 2 months later.

Important: If the estate inventory is submitted late, Verohallinto may impose a late fee (at least 50 €) and a 10–30 % tax surcharge. Apply for an extension via OmaVero before the deadline, with a justified reason.

Paying the Tax

Under 1 700 €: paid in one instalment
1 700 € – 50 000 €: paid automatically in two instalments
Over 50 000 €: can be split into more instalments on request

Tax is paid in OmaVero using the reference numbers provided. If you have payment difficulties, apply for a payment arrangement as soon as possible — late payment incurs interest.

Who Pays When There Is No Cash in the Estate?

Inheritance tax is the heir's personal tax, not the estate's tax. If you inherit real property but have no cash to pay the tax, the options are:

Use cash from the estate first, then pay the tax
Sell part of the estate assets to cover the tax
Apply for a payment arrangement via OmaVero (typically 6–24 months)
Take a bank loan secured against the inherited assets
Apply for a tax relief — for example when continuing a farm or business

Do You Need a Personal Timeline?

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Frequently Asked Questions

How much is inheritance tax in Finland in 2026? Inheritance tax is determined by the size of the inheritance share and the tax class. An inheritance share under 20 000 € is tax-free. Above that, the tax is progressive: tax class 1 (spouse, children) approximately 7–19 %, tax class 2 (siblings, all others) approximately 19–33 %. The exact amount is calculated using the Verohallinto inheritance tax calculator.

When must the inheritance tax return be filed? The inheritance tax return must be filed within 9 months of the death. In practice, Verohallinto receives the necessary information from the estate inventory and sends the tax decision automatically — a separate tax return is not necessarily required if the estate inventory has been submitted on time. Tax is paid in 1–2 instalments according to the decision.

What is the difference between tax classes? Tax class 1 covers the spouse, children, grandchildren, parents and their direct relatives. Tax class 2 covers siblings, siblings' children, uncles, aunts, cousins and all others — including unmarried partners in general. Tax class 2 levies approximately 1.5–2 times more than class 1 on the same inheritance share.

Does a widow/widower pay inheritance tax? A widowed spouse from a marriage is in tax class 1, but often pays very little or nothing, because 1) the matrimonial share is not inheritance but already the spouse's own property, and 2) there is a 90 000 € spouse deduction before taxation begins. In practice, many widows and widowers pay no inheritance tax at all.

Is a funeral grant or life insurance payout subject to inheritance tax? A funeral grant intended to cover funeral expenses and an employer's group life insurance payout are not inheritance — they belong directly to the beneficiary and are subject to income tax separately. A personal life insurance payout may be exempt from inheritance tax depending on the beneficiary designation and policy terms — check with Verohallinto.

Can inheritance tax be paid in instalments? Yes. Tax over 1 700 € is automatically paid in two instalments, and tax over 50 000 € can be split into more instalments. Verohallinto states the instalment schedule in the tax decision. If you have payment difficulties, you can apply for a payment arrangement via OmaVero.

How do I apply for a tax reduction or exemption? Continuing a business, continuing a farm, or a small inheritance by an old-age pensioner may give entitlement to a tax reduction under the inheritance and gift tax act (378/1940). Apply for a reduction when filing the inheritance tax return in OmaVero. If you are in a socially or financially difficult situation, you can also apply for relief.

Sources

Inheritance and Gift Tax Act (378/1940): finlex.fi
Verohallinto — Inheritance taxation: vero.fi
OmaVero (estate inventory submission, inheritance tax return): vero.fi/omavero