# Estonian tax rates 2024 to 2026

Every Estonian business tax rate on one page, by year: corporate and personal income tax, basic exemption, social tax, unemployment insurance, pension, VAT.

Law as of 30 Sept 2026. General information, not advice for your situation.

This page lists the main Estonian tax rates for a company and its people, for 2024, 2025 and 2026. Each rate links to the act that sets it. Estonia has one income tax rate for companies and for individuals, and a company pays it only when it distributes profit. Payroll adds social tax, unemployment insurance and the funded pension.

## In short

- [Corporate income tax](https://oscaraccountant.com/en/guides/estonian-tax-rates#corporate-income-tax): 22/78 of a net distribution from 01.01.2025. It was 20/80 before. Profit that stays in the company is not taxed.
- [Personal income tax](https://oscaraccountant.com/en/guides/estonian-tax-rates#personal-income-tax): 22% in 2025 and 2026, 20% in 2024.
- [Basic exemption](https://oscaraccountant.com/en/guides/estonian-tax-rates#basic-exemption): 700 EUR a month (8 400 EUR a year) at every income level from 01.01.2026.
- [Social tax](https://oscaraccountant.com/en/guides/estonian-tax-rates#social-tax): 33%, paid by the employer, on at least 886 EUR a month in 2026.
- [Unemployment insurance](https://oscaraccountant.com/en/guides/estonian-tax-rates#unemployment-insurance): 1.6% from the employee and 0.8% from the employer.
- [Funded pension](https://oscaraccountant.com/en/guides/estonian-tax-rates#funded-pension): 2%, or 4% or 6% by the person's choice.
- [VAT](https://oscaraccountant.com/en/guides/estonian-tax-rates#vat): 24% from 01.07.2025, with reduced rates of 13% and 9%.

| Tax                                           | 2024                                 | 2025                                 | 2026                    |
| --------------------------------------------- | ------------------------------------ | ------------------------------------ | ----------------------- |
| Corporate income tax on a distribution        | 20/80; 14/86 on regular dividends    | 22/78                                | 22/78                   |
| Personal income tax                           | 20%                                  | 22%                                  | 22%                     |
| Basic exemption, per month                    | Up to 654 EUR, less at higher income | Up to 654 EUR, less at higher income | 700 EUR at every income |
| Social tax                                    | 33%                                  | 33%                                  | 33%                     |
| Minimum monthly social tax base               | 725 EUR                              | 820 EUR                              | 886 EUR                 |
| Unemployment insurance, employee and employer | 1.6% and 0.8%                        | 1.6% and 0.8%                        | 1.6% and 0.8%           |
| Funded pension (II pillar)                    | 2%                                   | 2%, 4% or 6%                         | 2%, 4% or 6%            |
| VAT, standard rate                            | 22%                                  | 22% to 30.06.2025, then 24%          | 24%                     |

## Corporate income tax

A resident company pays income tax only when it distributes profit: a dividend, another payout to the owners, or one of the other taxable objects such as a fringe benefit or a gift. Profit that the company keeps is not taxed, and no annual corporate tax return on the accounting profit exists ([Income Tax Act § 50](https://www.riigiteataja.ee/akt/129042026004)).

- **From 01.01.2025:** the rate is 22%. The tax is 22/78 of the net amount paid out ([Income Tax Act § 4 (1) and (1^1)](https://www.riigiteataja.ee/akt/129042026004)). On a net dividend of 7 800 EUR, the company pays 2 200 EUR of tax.
- **Until 31.12.2024:** the rate was 20%, so the tax was 20/80 of the net amount.
- **14/86 on regular dividends, 2019 to 2024:** a company could pay "regular" dividends, up to the average of the dividends it had taxed in the 3 previous years, at 14/86. On such a dividend to an individual, the company withheld a further 7%. Both rules ended for distributions made from 01.01.2025 ([Tax and Customs Board: dividends](https://www.emta.ee/ariklient/maksud-ja-tasumine/tulumaks-ja-sotsiaalmaks/dividendide-ja-omakapitali-valjamaksete)).
- **No tax is withheld from a dividend today,** whoever receives it. One exception remains: a company that passes on to an individual a dividend whose profit was taxed at 14/86 before 2025 withholds 7% ([Income Tax Act § 61 (68)](https://www.riigiteataja.ee/akt/129042026004)).
- **No 2% security tax on profit.** The Security Tax Act planned a 2% tax on annual profit. It was repealed before it took effect, so no company pays it ([repealing act, RT I, 08.07.2025, 1](https://www.riigiteataja.ee/akt/108072025001)).

The company pays the same 22/78 on a fringe benefit, a gift and a non-business expense. On a fringe benefit it also pays 33% social tax on the benefit plus the income tax ([Income Tax Act § 48](https://www.riigiteataja.ee/akt/129042026004); [Social Tax Act § 2 (1) p 7](https://www.riigiteataja.ee/akt/121052026019)). The company declares all of these on the monthly TSD return and pays by the 10th day of the next month.

See [corporate income tax on distributions](https://oscaraccountant.com/en/guides/cit-distribution-tax) and the [dividend tax calculator](https://oscaraccountant.com/en/tools/dividend-tax-calculator).

## Personal income tax

The income tax rate for an individual is the same as for a company: 22% in 2025 and 2026, and 20% in 2024 ([Income Tax Act § 4 (1)](https://www.riigiteataja.ee/akt/129042026004)). A planned rise to 24% was cancelled ([act of 03.12.2025, RT I, 18.12.2025, 3](https://www.riigiteataja.ee/akt/118122025003)).

The employer withholds the tax from a salary or a board member fee. The order of the calculation is: the gross pay, minus the employee's unemployment insurance, minus the funded pension, minus the basic exemption the person has claimed, then 22% ([Income Tax Act § 42](https://www.riigiteataja.ee/akt/129042026004)). The [salary calculator](https://oscaraccountant.com/en/tools/salary-calculator) does this for you.

## Basic exemption

From 01.01.2026 the basic exemption (_maksuvaba tulu_) is 8 400 EUR a year, or 700 EUR a month, at every income level ([Income Tax Act § 23 (1)](https://www.riigiteataja.ee/akt/129042026004); [Tax and Customs Board: tax changes 2026](https://www.emta.ee/uudised/maksumuudatused-2026)).

- **2024 and 2025:** up to 7 848 EUR a year, or 654 EUR a month. The exemption became smaller as the annual income grew above 14 400 EUR, and it was zero for an annual income above 25 200 EUR ([Income Tax Act § 23, version of 2023](https://www.riigiteataja.ee/akt/130062023081); [Tax and Customs Board: tax rates](https://www.emta.ee/eraklient/maksud-ja-tasumine/tulu-deklareerimine/maksumaarad); [Tax and Customs Board: tax changes 2026](https://www.emta.ee/uudised/maksumuudatused-2026)).
- **Pension age:** in 2024, 2025 and 2026 a person at pension age has 9 312 EUR a year, or 776 EUR a month ([Income Tax Act § 23^5 (1)](https://www.riigiteataja.ee/akt/129042026004); [Tax and Customs Board: tax rates](https://www.emta.ee/eraklient/maksud-ja-tasumine/tulu-deklareerimine/maksumaarad)).

An employer deducts the exemption only when the person has given a written application. A person with several payers applies to one payer only ([Income Tax Act § 42 (1) and (2)](https://www.riigiteataja.ee/akt/129042026004)).

## Social tax

The employer pays social tax at 33% of the salary or the board member fee, by the 10th day of the next month ([Social Tax Act § 7 (1) and § 9](https://www.riigiteataja.ee/akt/121052026019)). The rate was the same in 2024 and 2025 ([Tax and Customs Board: tax rates](https://www.emta.ee/eraklient/maksud-ja-tasumine/tulu-deklareerimine/maksumaarad)). The employee pays no social tax from the salary.

For an employee, the tax is due on at least a minimum monthly base, even when the salary is lower ([Social Tax Act § 2 (2)](https://www.riigiteataja.ee/akt/121052026019)). The State Budget Act sets the base for each year. It cannot be lower than the minimum wage in force on 1 July of the previous year ([Social Tax Act § 2^1](https://www.riigiteataja.ee/akt/121052026019)).

| Year | Minimum monthly base | Minimum social tax a month |
| ---- | -------------------- | -------------------------- |
| 2024 | 725 EUR              | 239.25 EUR                 |
| 2025 | 820 EUR              | 270.60 EUR                 |
| 2026 | 886 EUR              | 292.38 EUR                 |

The 2026 base is in the [2026 State Budget Act § 2 (6)](https://www.riigiteataja.ee/akt/118122025022). The minimum wage rose to 946 EUR on 01.04.2026 ([Government regulation nr 36](https://www.riigiteataja.ee/akt/124032026005)), but that does not change the 2026 base. A board member fee has no minimum base.

## Unemployment insurance

The unemployment insurance premium is 1.6%, withheld from the employee, and 0.8%, paid by the employer. The Government sets the rates by regulation for four years ahead ([Unemployment Insurance Act § 41](https://www.riigiteataja.ee/akt/121052026021)). The rates were the same in 2024 ([regulation nr 88 of 29.09.2023](https://www.riigiteataja.ee/akt/103102023019)), 2025 ([regulation nr 59 of 19.09.2024](https://www.riigiteataja.ee/akt/124092024004)) and 2026 ([regulation nr 78 of 25.09.2025](https://www.riigiteataja.ee/akt/130092025003)), and regulation nr 87 of 18.09.2026 keeps them for 2027 to 2030 ([regulation nr 87](https://www.riigiteataja.ee/akt/123092026008)). See also the [Tax and Customs Board: unemployment insurance](https://www.emta.ee/ariklient/maksud-ja-tasumine/tulumaks-ja-sotsiaalmaks/tootuskindlustusmakse) page.

The employer pays both parts by the 10th day of the next month. The employee part stops at retirement age ([Unemployment Insurance Act § 40 to § 42](https://www.riigiteataja.ee/akt/121052026021)). A board member fee carries no unemployment insurance.

## Funded pension

The employer withholds the funded pension payment (II pillar) at 2% of the gross pay, or at 4% or 6% when the person has chosen that rate, and pays it by the 10th day of the next month ([Funded Pensions Act § 9 and § 11](https://www.riigiteataja.ee/akt/103122024016)). The 4% and 6% rates apply from 01.01.2025. A new choice made by 30 November applies from the next 1 January.

## VAT

The standard VAT rate is 24% for a supply whose tax point is on or after 01.07.2025. It was 22% from 01.01.2024 to 30.06.2025 ([VAT Act § 15 (1)](https://www.riigiteataja.ee/akt/130122025021)). Accommodation is taxed at 13% and books, medicines and press publications at 9%. Exports and intra-Community supplies of goods are taxed at 0%.

The [Estonian VAT rates](https://oscaraccountant.com/en/guides/estonian-vat-rates) page has every rate, its dates and what it applies to. The [VAT calculator](https://oscaraccountant.com/en/tools/vat-calculator) adds or removes VAT at each rate.

## Motor vehicle tax

Estonia has an annual motor vehicle tax and a registration fee from 01.01.2025 ([Motor Vehicle Tax Act](https://www.riigiteataja.ee/akt/114112025027)). The owner on 1 January owes the tax for the year. The amount depends on the vehicle's CO2 emissions, mass and age, so there is no single rate.

See [the motor vehicle tax of a company car](https://oscaraccountant.com/en/guides/vehicle-tax-fleet-insurance/motor-vehicle-tax) and the [car tax calculator](https://oscaraccountant.com/en/tools/car-tax-calculator).

General information, not advice for your situation. The law as in force on 30.09.2026.

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## Sources

- [Income Tax Act (Tulumaksuseadus) § 4, § 23, § 23^5, § 42, § 48, § 50, § 61](https://www.riigiteataja.ee/akt/129042026004)
- [Act of 03.12.2025 cancelling the income tax rise (RT I, 18.12.2025, 3)](https://www.riigiteataja.ee/akt/118122025003)
- [Act repealing the Security Tax Act (RT I, 08.07.2025, 1)](https://www.riigiteataja.ee/akt/108072025001)
- [Social Tax Act (Sotsiaalmaksuseadus) § 2, § 2^1, § 7, § 9](https://www.riigiteataja.ee/akt/121052026019)
- [2026 State Budget Act § 2 (6)](https://www.riigiteataja.ee/akt/118122025022)
- [Government regulation nr 36 of 23.03.2026 on the minimum wage](https://www.riigiteataja.ee/akt/124032026005)
- [Unemployment Insurance Act (Töötuskindlustuse seadus) § 40 to § 42](https://www.riigiteataja.ee/akt/121052026021)
- [Income Tax Act (Tulumaksuseadus), version of 30.06.2023, § 23](https://www.riigiteataja.ee/akt/130062023081)
- [Government regulation nr 88 of 29.09.2023 on unemployment insurance rates 2024 to 2027](https://www.riigiteataja.ee/akt/103102023019)
- [Government regulation nr 59 of 19.09.2024 on unemployment insurance rates 2025 to 2028](https://www.riigiteataja.ee/akt/124092024004)
- [Government regulation nr 78 of 25.09.2025 on unemployment insurance rates 2026 to 2029](https://www.riigiteataja.ee/akt/130092025003)
- [Government regulation nr 87 of 18.09.2026 on unemployment insurance rates 2027 to 2030](https://www.riigiteataja.ee/akt/123092026008)
- [Funded Pensions Act (Kogumispensionide seadus) § 9, § 11](https://www.riigiteataja.ee/akt/103122024016)
- [VAT Act (Käibemaksuseadus) § 15](https://www.riigiteataja.ee/akt/130122025021)
- [Motor Vehicle Tax Act (Mootorsõidukimaksu seadus)](https://www.riigiteataja.ee/akt/114112025027)
- [Tax and Customs Board: tax rates 2024 to 2026](https://www.emta.ee/eraklient/maksud-ja-tasumine/tulu-deklareerimine/maksumaarad)
- [Tax and Customs Board: tax changes 2026](https://www.emta.ee/uudised/maksumuudatused-2026)
- [Tax and Customs Board: unemployment insurance premium](https://www.emta.ee/ariklient/maksud-ja-tasumine/tulumaks-ja-sotsiaalmaks/tootuskindlustusmakse)
- [Tax and Customs Board: dividends and equity payouts](https://www.emta.ee/ariklient/maksud-ja-tasumine/tulumaks-ja-sotsiaalmaks/dividendide-ja-omakapitali-valjamaksete)

## Related pages

- [Estonian VAT rates](https://oscaraccountant.com/en/guides/estonian-vat-rates): The Estonian VAT rates: 24% standard, 13% accommodation, 9% books, medicines and press, 0% exports, with their dates since 2024 and what each applies to.
- [Corporate income tax in Estonia: tax on distributed profit](https://oscaraccountant.com/en/guides/cit-distribution-tax): How Estonia taxes company profit only when it is paid out: the 22/78 rate in 2026, how to compute it, losses, non-resident owners, and salary versus dividend.
- [Paying a dividend from an Estonian OÜ: the steps, the limits and the TSD](https://oscaraccountant.com/en/guides/dividends-mechanics): The steps to pay a lawful dividend from an OÜ, how much you may pay, instalments, dividends in kind, and how to declare it on the TSD.
- [Paying yourself as the founder of an Estonian OÜ: board fee, salary and social tax](https://oscaraccountant.com/en/guides/founder-remuneration): How the owner-manager of an Estonian OÜ is paid: the board member fee, a salary, the minimum social tax, health insurance, the basic exemption and the TSD.
- [Hiring employees in Estonia: contracts, registration and foreign staff](https://oscaraccountant.com/en/guides/hiring-employees): What an Estonian OÜ must do before its first employee starts: the written contract, fixed terms and probation, the employment register, the minimum wage and the employer cost, family members, board members, non-EU staff and interns.
- [Motor vehicle tax on a company car in Estonia: how it is calculated and when it is paid](https://oscaraccountant.com/en/guides/vehicle-tax-fleet-insurance/motor-vehicle-tax): The annual Estonian motor vehicle tax: who pays it, how the base, CO2, mass and age parts add up, the rates for electric cars and vans, the payment dates of 15 June and 15 December, and what happens on a sale, a scrapping or a late payment.
- [Estonian salary calculator](https://oscaraccountant.com/en/tools/salary-calculator): Work out the net pay and the employer's total cost of an Estonian salary or board member fee, with income tax, the basic exemption, social tax, unemployment insurance and the funded pension.
- [Estonian dividend tax calculator](https://oscaraccountant.com/en/tools/dividend-tax-calculator): Work out the corporate income tax on a dividend from an Estonian company, from the net or the total amount, with the rate of the payment date and the TSD due date.
- [Income tax (tulumaks)](https://oscaraccountant.com/en/glossary/income-tax): What tulumaks is in Estonia: 22 percent on personal income, 22/78 on the profit a company distributes, how it is withheld and when it is paid.
- [Basic exemption (maksuvaba tulu)](https://oscaraccountant.com/en/glossary/basic-exemption): What maksuvaba tulu is: the tax-free part of a person's income in Estonia, 700 euros a month from 01.01.2026, and how an employer applies it.
- [Social tax (sotsiaalmaks)](https://oscaraccountant.com/en/glossary/social-tax): What sotsiaalmaks is: the 33 percent tax an Estonian employer pays on top of pay, the 2026 minimum base of 886 euros, and how it funds health insurance and pension.

Reviewed on 10 Oct 2026. Law as of 30 Sept 2026. General information, not advice for your situation.

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