Taxes in Estonia (Tulumaks ja sotsiaalmaks)

Estonia has a flat income tax run by the Tax and Customs Board (Maksu- ja Tolliamet, EMTA). There are no tax brackets: the same rate applies to all employment income above the tax-free amount. Employers withhold tax and contributions every month, and the annual return is pre-filled online for you to check.

Income tax and the tax-free amount (2026)

• Rate: 22% on wages, business income, pensions, benefits and most other income.
• Basic exemption (maksuvaba tulu): €700 a month, or €8,400 a year. Since 2026 it is the same for everyone and no longer shrinks as income rises.
• At pension age: €776 a month (€9,312 a year).
• Only one payer (for example your main employer) should apply the exemption each month. Tell each payer whether to apply it.

Social tax and other contributions on wages (2026)

• Social tax (sotsiaalmaks): 33%, paid by the employer on top of gross pay. It funds the state pension and health insurance. The minimum monthly base is €886 (social tax at least €292.38 a month).
• Unemployment insurance premium: 1.6% from the employee and 0.8% from the employer.
• Funded pension (pillar II): 2% from the employee, or 4% or 6% if chosen.
• Minimum wage: €946 a month for full-time work since 1 April 2026.

Tax residence and the annual return

You are an Estonian tax resident if your home is in Estonia or you stay here at least 183 days in any 12 months. Residents pay tax on their worldwide income; non-residents only on Estonian income. Foreign tax paid may be credited under the law and tax treaties.

The annual return (tuludeklaratsioon) for the previous year opens in the e-Tax service (e-maksuamet) on 15 February and must be filed by 30 April. EMTA pre-fills it with data it holds. Any extra tax is due by 1 October. You can deduct, for example, training costs for yourself and family members under 26 at recognised schools, and contributions to pillar III within limits.

Other taxes

• VAT (käibemaks): 24% standard rate, with reduced rates of 13% and 9% (2026).
• Land tax (maamaks): owners pay a municipal tax on land; for residential land the council sets a rate of 0.1–1.0% of the land's taxable value a year. A tax of up to €100 is due in full by 31 March; a larger tax can be paid in two parts, at least half (and at least €100) by 31 March and the rest by 1 October.
• Companies pay income tax only when they distribute profit, for example as dividends.

Common pitfalls for newcomers

• Using the €700 exemption with two payers at the same time leads to extra tax in the annual return.
• Foreign income must be declared even if it was taxed abroad.
• Rental income from a flat must be declared; owners confirm in the return whether they received it.
• Check the pre-filled return: you are responsible for its accuracy.

Official guidance: EMTA: tax rates, EMTA: income and social taxes, Income Tax Act, Land Tax Act