Pension taxation

Like other earned income, earnings-related pension is taxable income. Pension is taxed according to tax legislation and the Tax Administration’s guidelines. Since pensions are taxed differently than salaries, you will need a different tax card for your pension. Once you receive a pension decision, obtain a tax card for your pension as soon as possible.

Did your pension begin in late 2022?

If your pension began on 1 November 2022 or 1 December 2022, we will not automatically receive the tax rate for 2023 from the Tax Administration. Request a tax rate for your pension for 2023 as well – the Tax Administration will automatically send your requested tax rate to Varma.

Taxation of pensions at year-end

The 2023 tax rates for pensioners will be applied from 1 February 2023. Starting from February, we will withhold tax from pensions in accordance with the 2023 tax rate provided by the Tax Administration. As a result of this, the amount of pension paid into your account may change at the beginning of February. In our online service, you can check the amount of pension that was paid in February.

Obtain a tax card for pension income when your pension begins

For pensions and rehabilitation allowance, we need a tax card, which you can order from the tax authority immediately after receiving the pension decision. The card must be valid from the start of the benefit. When you have ordered a tax card, the tax authorities will submit it directly to Varma.

If we have not received your pension income tax card when your pension begins, we will have to withhold 40% tax on your pension. If the amount of your pension increases by more than 20 euros, the tax on the increase is 40%.

We will refund any excess tax withheld from your pension as soon as possible after you have received the pension income tax card from the tax authority.

How to get a new tax card

  • From the MyTax service at vero.fi/omavero
  • From the Finnish Tax Administration’s service number at 029 497 050 or
  • from a Finnish tax office.

The Tax Administration recommends that its customers primarily use the online service. When you order a tax card, the tax authorities will send it directly to Varma. 


To obtain a tax card, you are required to have:

  • a pension decision
  • information about your earnings at the start of the year, withholding tax and deductions.

Attend to your tax matters

  • If the amount of your pension changes for some reason other than the annual index adjustment, contact your local tax office to verify your tax rate.
  • If you wish to raise the tax percentage indicated by the tax authority, you can do that yourself in our online service. 
  • If you are working while drawing a pension, you must obtain a separate tax card for your employment.


Log in to Varma Online Service

Taxation for pension recipients living in Spain will change as of 1 January 2022


Starting from 1 January 2022, Finland has the right to collect taxes on nearly all pensions paid from Finland to Spain as the application of the transition period regulation of the tax treaty between Finland and Spain ends. Our pension recipients living in Spain should check the vero.fi website to see how the tax treaty influences the taxation of pensions and, if necessary, request a new tax card for pension.

Read more about the taxation change at vero.fi

Varma takes care of pension matters

  • Once your pension begins, we request a new tax rate from the tax authorities every year. If your pension begins on 1 November or 1 December, we will not receive the tax card for the following year automatically from the Tax Administration. Therefore, if you have retired late in the year, you need to order a new tax card for the pension for the following year as well.
  • We inform the Incomes Register about the pension payments you have received and the taxes that have been withheld on them.
  • If you live outside of Finland permanently and it has been 3 years since you left Finland, we will request a tax card for limited tax liability from the Finnish tax authorities for your pension.

Help with using our services

Take care of your pension matters online

In our online service, you can, for instance

  • order the employee pension card
  • send and receive messages and attachments
  • view decisions and documents in the electronic archive
  • update your contact details and raise your tax percentage.
Log in to Varma Online Service