Taxes in Estonia - Short Overview

Corporate Income tax on profits

0% until 30.06.2026
2% from 01.07.2026 - 31.12.2028 (as part of a new defense tax initiative)

Corporate Income tax on distributed profits

20% until 31.12.2024
22% from 01.01.2025
24% from 01.01.2026 - 31.12.2028 (as part of a new defense tax initiative)

Corporate income tax 20/22/24% is paid from distributed profit. Shareholders receive 80/78/76%.

Private person income tax

20% until 31.12.2024
22% from 01.01.2025
24% from 01.01.2026 - 31.12.2028 (as part of a new defense tax initiative)

Private person income tax is from gross income and is deducted from income.

VAT

22% until 30.06.2025
24% from 01.07.2025 - 31.12.2028 (as part of a new defense tax initiative)

Social security tax

33%

Social security tax is from gross income and is paid on top of salary by employer.

Unemployment tax

1.6% for employer
0.8% for employee

Unemployment tax is calculated based on gross salary. The employer pays 0.8% on top of the salary, and 1.6% is deducted from the employee's salary.

Tax-exempt income

12 x 654 = 7 848 EUR/year

Responsibility for tax payments

Responsibility for tax payments is always on the company (employer).