Estonia income tax calculator 2026
Income tax is charged on income after the basic exemption is deducted. The rate is 22 per cent and the exemption is €700 a month, regardless of how much you earn.
- Basic exemption
- €700.00
- After income tax
- €1,714.00
Rates and thresholds
- Income tax rate
- 22%
- Basic exemption per month
- €700
- Basic exemption per year
- €8,400
- At state pension age
- €776 a month
- Income-dependent taper
- Abolished from 2026
How much is income tax in Estonia?
The rate is 22 per cent and it is flat — Estonia has no tax bands, so the same percentage applies to the minimum wage and to an executive salary alike. Tax is charged on income after the €700 monthly basic exemption, and on a salary also after the unemployment insurance and funded pension contributions.
Do you have to apply for the basic exemption?
Yes. The exemption is applied only if you have given your employer a written application, and only to one employer at a time — two applications would claim it twice and leave you owing tax at year end. Without one, tax is withheld on the whole amount and the overpayment comes back through your annual return.
What changed in 2026?
The basic exemption no longer depends on how much you earn. It used to taper to zero above a threshold — the "tax hump", which made the real rate on a bonus far higher than 22 per cent. From 2026 the exemption is a flat €700 a month and extra income is taxed at the same rate as your base salary.
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