Estonia Salary Calculator 2026
Gross-to-net salary calculator for Estonia. For employees and OÜ owners.
Sourced from official government publications
Net monthly salary
EUR 2 410
EUR 28 917 / year
80.3% take-home
Effective tax rate
19.7%
of gross salary
Deductions
EUR 590
per month
| Deduction | Amountper month | Rate |
|---|---|---|
| Gross salary | EUR 3 000 | |
| SOCIAL CONTRIBUTIONS | ||
| Unemployment insurance (töötuskindlustus) | EUR 48 | 1.6% |
| Funded pension II pillar (kogumispension) | EUR 60 | 2.0% |
| OTHER | ||
| Basic exemption— reduces taxable base | EUR 700 | — |
| INCOME TAX | ||
| Income tax (tulumaks) | EUR 482 | 22.0% |
| Total deductions | EUR 590 | 19.7% |
| Net salary | EUR 2 410 | |
Effective rate
19.7%
Marginal rate
22.0%
Curious how 3 000 EUR / month compares elsewhere?
See take-home pay across 12 other European countries side by side.
Built by SalaryCalc team
Frequently asked questions
Estonia uses a flat 22% income tax rate from 2026 (increased from 20%). Employees benefit from a universal basic exemption of €8 400/year — income up to this amount is completely tax-free. The 22% rate applies to income above the basic exemption. Estonia's tax system is known for its simplicity and digital efficiency.
Employees pay two contributions from their gross salary: 1.6% unemployment insurance (töötuskindlustus) and 2% towards the funded pension (II pillar / II sammas). The employer separately pays 33% social tax (sotsiaalmaks) on top of your gross salary to cover pension and health insurance — this does not come out of your net pay.
Estonian OÜ (limited liability company) owners can distribute profits as dividends. The company pays 22% corporate income tax (tulumaks) on distributed profit. For example, if the company distributes €10 000, CIT is €2 200, and the owner receives €7 800 net. The 22/78 ratio is used in reverse — when calculating the gross cost from a desired net dividend. Dividends received by the individual are not subject to additional personal income tax.
Estonia uses a unique distributed profit taxation model: corporate income tax is only due when profits are distributed, not when earned. Retained profits in the company are tax-free. This encourages reinvestment and is a major reason Estonia ranks highly in international tax competitiveness indices.
Yes — use the Employee mode for standard employment income and the B2B mode for the OÜ dividend model. Note that the OÜ model does not include social security contributions for the owner (owners often pay a minimum salary separately to gain social benefits). The pure dividend model shows only the CIT cost of distribution.
From 2026, the universal basic exemption is €8 400/year (€700/month) for all taxpayers regardless of income level. Previously, the exemption phased out at higher incomes. The new flat exemption simplifies calculation and gives a consistent tax-free threshold to all employees.