Estonia Tax Calculator (2026)

Income tax rates and take-home pay for Estonia

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Estonia Income Tax Brackets (2026)

Bracket Income Range Rate
Flat income tax rate€0+22.0%

Personal allowance: €8,400

Unemployment insurance contribution

Bracket Income Range Rate
Unemployment insurance€0+1.6%

Compulsory accumulative pension scheme

Bracket Income Range Rate
Compulsory accumulative pension (minimum 2%)€0+2.0%

Key Facts

Tax Year

2026

Currency

EUR

Top Rate

22.0%

Brackets

1 bracket

Allowance

€8,400

Social Contributions

2 items

Assumptions

  • · Flat income tax rate of 22% applies to all resident employment income.
  • · Basic personal allowance of EUR 700/month (EUR 8,400/year) deducted from taxable income.
  • · Employee social contributions include: unemployment insurance 1.6%, compulsory accumulative pension 2% (minimum tier assumed), and employer-side pension contribution of 2% of 33% social tax transferred to employee account is not included as it is employer-side.
  • · Employer social tax (33%) is excluded as it is not a direct employee deduction.
  • · No local income taxes in Estonia.
  • · Compulsory accumulative pension scheme applies to residents born after 31 December 1982; minimum contribution rate of 2% assumed.

Frequently asked questions

What is the income tax rate in Estonia?

Estonia has a flat income tax rate of 22% that applies to all resident employment income, regardless of how much you earn. This single rate applies to everyone, making Estonia's tax system notably simple compared to many other countries.

Do I get any personal allowance or tax-free threshold in Estonia?

Yes, Estonia provides a basic personal allowance of EUR 8,400 per year (EUR 700 per month) that is deducted from your taxable income before the 22% tax is applied. This means you only pay income tax on earnings above this threshold.

What social contributions do I need to pay as an employee in Estonia?

As an employee in Estonia, you contribute 1.6% to unemployment insurance and 2% to the compulsory accumulative pension scheme, both calculated on your gross income. Both contributions are deductible from your taxable income, which reduces your overall tax burden.

Is there a compulsory pension contribution in Estonia and who has to pay it?

Yes, Estonia has a compulsory accumulative pension scheme with a minimum contribution rate of 2%, which applies to residents born after 31 December 1982. This contribution is automatically deducted from your salary and goes into your personal pension account.

Are there any regional or local income taxes in Estonia?

No, Estonia has no local or regional income taxes. The 22% flat income tax rate is consistent across the entire country, so your tax liability is the same whether you work in Tallinn or anywhere else in Estonia.

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