Electricity - Glossary
Electricity tax
An excise tax levied by the state on electricity. In Finland the rate is 2.325 cents/kWh excluding VAT, 2.92 cents/kWh with VAT (tax class I, households, including the security of supply fee).
The electricity tax is an excise tax levied by the Finnish state and added to the price of electricity. For households and service-sector companies the rate is tax class I (2.325 cents/kWh from 1 April 2026, including the security of supply fee). Industry falls under the lower tax class II (0.135 cents/kWh). Data centres moved to tax class I on 1 July 2026. VAT (25.5%) is then applied on top of the electricity tax.
The tax is a significant part of the bill - for an annual consumption of 5,000 kWh, the tax alone amounts to about 116 euros, or 146 euros with VAT. The electricity tax has been reduced several times in recent years to support consumer purchasing power.
The size of the tax cannot be affected by the choice of contract - it is the same regardless of supplier or contract type. The only way to reduce the tax is to reduce consumption.
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Related concepts
Electricity transmission charge
The fee charged by the network company for transmitting electricity from the power plant to your home. The network company cannot be chosen.
Kilowatt-hour (kWh)
The unit of electrical energy. One kilowatt-hour equals one hour of use of a 1,000-watt appliance.
Electricity consumption
The amount of electrical energy used by a household or business, measured in kilowatt-hours (kWh).
Frequently asked questions
How much is the electricity tax in 2026?
The household rate (tax class I) is 2.325 cents/kWh excluding VAT from 1 April 2026 (tax 2.24 + security of supply fee 0.085). With 25.5% VAT it is 2.92 cents/kWh.
Is the tax included in the contract price?
Suppliers usually quote prices without the tax. On the final bill the tax and VAT are added automatically.
Can the electricity tax be avoided?
The tax cannot be avoided - it is required by law. However, electricity produced with your own solar panels is exempt if it is consumed on site.