Estonia net salary calculator 2026
Work out your take-home pay in Estonia for 2026. The calculator deducts 1.6% unemployment insurance and 2% funded pension, then a flat 22% income tax on the remainder after the basic exemption. From 2026 the basic exemption is a flat EUR 700/month with no income taper. Single employee, exemption at one employer.
| Gross salary | €2,000.00 |
| Unemployment insurance (1.6%) | -€32.00 |
| Funded pension (II pillar, 2%) | -€40.00 |
| Income tax (22%) | -€270.16 |
| Net pay (take-home) | €1,657.84 |
Effective deduction rate 17.1 % · of which income tax 13.5 %
How this is calculated
- Deduct the employee unemployment insurance premium of 1.6% and the mandatory funded pension (II pillar) contribution of 2% from gross salary.
- Subtract the basic exemption. From 2026 this is a flat EUR 700 per month (EUR 8,400 per year) applied at one employer, with no income-based taper.
- Apply the flat 22% income tax to the remainder: gross minus the two contributions minus the basic exemption. Take-home pay = gross minus the contributions minus income tax.
- The employer separately pays 33% social tax on top of gross; this funds pension and health insurance and does not reduce your net pay.
FAQ
What changed in Estonia for 2026?
The basic exemption became a flat EUR 700 per month for everyone, replacing the previous income-dependent exemption that tapered to zero for higher earners (the tax hump). A mid-to-high earner who previously got no exemption now saves 22% of EUR 700 per month. The income tax rate stayed at 22%.
Is Estonia's income tax really flat?
Yes. Estonia applies a single 22% rate to taxable income, with no brackets. Progressivity comes only from the basic exemption, which shelters the first EUR 700 per month. Above that, every euro is taxed at 22%.
What is the II pillar pension contribution?
It is a mandatory funded pension contribution, 2% of gross by default. Since 2024 employees may elect a higher 4% or 6% rate (applications by 30 November). This calculator uses the default 2%. The state adds 4% from the employer's social tax independently.
Does the employer's 33% social tax come out of my pay?
No. The 33% social tax is an employer cost paid on top of your gross salary; it funds pension and health insurance but is never deducted from your net. Your payslip deductions are the 1.6% unemployment premium, the 2% pension and the 22% income tax.
Official sources
Data last verified 2026-07-18 · tax year 2026 · 9 sourced values
Every rate, threshold and formula is read from a versioned dataset of official primary sources — no numbers are hardcoded. Values without a published 2026 primary source are flagged, never guessed.
6 sources
- EMTA (Estonian Tax and Customs Board) — Flat income tax 22% (2026, unchanged from 2025)
- EMTA — Flat basic exemption EUR 700/month (EUR 8,400/year), no income taper from 2026
- EMTA — Employee unemployment insurance premium 1.6% (locked 2025-2028)
- EMTA — Mandatory funded pension (II pillar) default 2% (4%/6% optional)
- EMTA — Social tax 33% (employer-side / self-employed)
- EMTA — VAT standard rate 24% (from 1 July 2025)
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.
Estonia tax guides
- How Income Tax Works in Estonia (2026): Flat 22% Rate and the New Flat EUR 700 Exemption →
- Social Contributions in Estonia (2026): Unemployment Insurance, Funded Pension and Employer Social Tax →
- Self-Employed Taxes in Estonia (2026): FIE Income Tax, Social Tax and the EUR 8,400 Exemption →
- How VAT (Kaibemaks) Works in Estonia (2026): Standard 24%, Reduced Rates and Registration →