Finland is undergoing a large-scale welfare reform, pursuant to which health, social and rescue services are being transferred from the municipalities to well-being services counties. In order to finance the reform, some tax revenue from the municipalities is being transferred to the state. The overall goal is to, nevertheless, keep the tax burden at the same level as before the reform. This article examines the reform and the significant changes triggered by it in respect of Finnish personal income taxation with effect from 1 January 2023.