Estonian taxes

Income tax rate:

  • Income of the year 2015 – 20%
  • Income of the year 2014 – 21%
  • Income of the year 2013 – 21%
  • Income of the year 2012 – 21%
  • Income of the year 2011 – 21%
  • Income of the year 2010 – 21%
  • Income of the year 2009 – 21%
  • Income of the year 2008 – 21%
  • Income of the year 2007 – 22%
  • Income of the year 2006 – 23%
  • Income of the year 2005 – 24%
  • From the year 2000 until 2004 – 26%

Period of taxation for natural persons is a calendar year.

In Estonia, annual basic exemption (non-taxable amount) per year is:

  • Income of the year 2015 – 1848 EUR
  • Income of the year 2014 – 1728 EUR
  • Income of the year 2013 – 1728 EUR
  • Income of the year 2012 – 1728 EUR
  • Income of the year 2011– 1728 EUR
  • Income of the year 2010 – 27 000 EEK
  • Income of the year 2009 – 27 000 EEK
  • Income of the year 2008 – 27 000 EEK
  • Income of the year 2007 – 24 000 EEK
  • Income of the year 2006 – 24 000 EEK
  • Income of the year 2005 – 20 400 EEK
  • Income of the year 2004 – 16 800 EEK
  • Income of the year 2003 – 12 000 EEK
  • Income of the year 2002 – 12 000 EEK
  • Income of the year 2001 – 12 000 EEK
  • Income of the year 2000 – 9600 EEK

The moment of corporate income taxation is shifted until the distribution of profits in Estonia. Period of taxation for legal entities and non-residents with permanent establishments in Estonia is one calendar month.

Corporate income tax rate in Estonia:

  • Distribution in the year 2015 – 20/80
  • Distribution in the year 2014 – 21/79
  • Distribution in the year 2013 – 21/79
  • Distribution in the year 2012 – 21/79
  • Distribution in the year 2011 – 21/79
  • Distribution in the year 2010 – 21/79
  • Distribution in the year 2009 – 21/79
  • Distribution in the year 2008 – 21/79
  • Distribution in the year 2007 – 22/78
  • Distribution in the year 2006 – 23/77
  • Distribution in the year 2005 – 24/76
  • From the year 2000 until 2004 – 26/74 of the net amount (equals to 26% of gross profit)

…of the net amount.

Unemployment insurance premiums

In 2015, an unemployment insurance premium withheld is 1,6% of the gross salary of an employee.
In addition to this, employers pay the unemployment insurance premium at a rate of 0,8% of the amount of gross salaries monthly.

Period                                               Rate(%)
From                         Until                Employee         Employer
01.01.2015                                             1,6                      0,8
01.01.2013           31.12.2014                2                         1
01.08.2009           31.12.2012                2,8                      1,4
01.06.2009           31.07.2009                2                         1
31.05.2009                0,6                      0,3
Funded pension payment

From 2012, a rate of a funded pension payment is 2% of the gross salary of a resident employee.
From 2014, a rate of funded pension payment withheld may be 3%, if the person has submitted such application.

In 2011, a rate of a funded pension payment depended on the employee´s decision in 2010. If an employee had decided to continue making payments in 2010, funded pension payments were withheld at a rate of 2% in 2011. In all other cases, funded pension payments were withheld at a rate of 1% of the gross salary of the resident employee in 2011.

From 1 January 2010 until 31 December 2010, a funded pension payment was withheld only if an employee had submitted an application for continuation of making payments in 2010.

Funded pension payments were not withheld from payments made from 1 June 2009 until 31 December 2009.

You can find further information about the Estonian system of pension payments on the website of AS Eesti Väärtpaberikeskus (Estonian CSD)

Social tax

Social tax is paid by employer in full and a general rate is  33% of the gross payment.
There  is always a minimum obligation for social tax to be paid, in 2015, it is  117,15 EUR monthly, even if there were no payments for salaried work for each employee who is entitled to 1/12 of the basic exemption with this particular employer. 

Cash-based approach

In Estonia, there is a cash-based calculation of taxes. If payment of wages for December is paid out in January, the tax rates applicable in 2015 will be used. If December wages are paid out in December, the tax rates of 2014 are applicable.

Source: Estonian Tax Office


Read also Guide on taxation of income of non-residents and Foreigners coming to work to Estonia

7 Responses

  1. You can calculate Estonian wage and taxes here:

  2. Read also

    Estonian tax system consists of state taxes provided and imposed by tax Acts and local taxes imposed by a rural municipality or city council in its administrative territory pursuant to law. Tax is a single or periodic financial obligation which is imposed on taxpayers by an Act or a rural municipality or city council regulation issued pursuant to an Act for the performance of the public law functions of the state or local governments or to obtain revenue required therefor and which is subject to performance pursuant to the procedure, in the amount and within the terms prescribed by an Act or a regulation, without direct compensation to taxpayers therefor.

    State taxes are: income tax, social tax, land tax, gambling tax, value added tax, customs duty, excise duties, heavy goods vehicle tax.

    Local taxes are: sales tax, boat tax, advertisement tax, road and street closure tax, motor vehicle tax, animal tax, entertainment tax, parking charge.

  3. ! Government decided company and personal income tax will not drop to 20% next year, but will stay at 21% and will decline again by one percent starting from 2010.
    Quote from:

  4. Paying Estonian taxes from outside Estonia– now nearly impossible ?

    Each year the Maksu-Ja Tolliamet (Estonian Tax Office in Tallin) sends me a property tax bill for land I inherited.
    For many years I’ve simply mailed them an international money order in US$ from the US to pay the taxes.

    This year, however, the check was returned to me. They no longer accept checks of any kind. All taxes must be paid directly to their account at Swedbank or SEB

    Swedbank and SEB refuse to open an account for me, a US/Estonian citizen who does not reside in Sweden or Estonia.

    My tax bill is only about $200. My US bank charges $40 to transfer money internationally and will not do so in EEK, therefore an additional currency conversion charge.

    $ can be sent via Western Union but someone has to pick it up at a Western Union Office. I can send money via but only to someone’s e-mail address. The other ways involve someone getting a credit card and putting it into an ATM to withdraw funds.

    The practice of paying bills online by transfer from an account which is common all over Europe, is not done as much in the US, and not allowed at all to foreign banks.

  5. During the year 2010 has VAT changed also from 18% to 20%.

  6. C Soond – for some reason yes, US and some other banks rob so much money for transfers. Inside Estonia the payments are done almost with a moment and cost few cents as you probably know.

    I wonder why was you not able to open bank account in Estonia?? As already long time ago my friend from philipines was able to open up bank account in Estonia (took 15-20 minutes with standing in line) and she received telephone bank, Internet bank access codes + international VISA bank card of course, for free.
    You must be IN Estonia to open account as i cant see why should banks who want to stay trustworthy allow opening up bank accounts over Internet. You can paypall the money from your US to Estonia bank account and it does not cost a lot.

    I my self do not use SEB or Swedbank but i heard Swedbank should be pretty good. There is many more banks in Estonia and you do not have to have certain bank account to pay for taxes but you just need to pay it to their account, with today’s world it should not be hard to make bank transfer, at least in here.

    Opening up bank accounts & receiving all the cards & things is free last time i checked

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Get every new post delivered to your Inbox.

%d bloggers like this: