Europe

Estonia tax rates 2026

A flat 22% personal income tax, paired with a distinctive corporate model that taxes only distributed profits. Reinvested earnings are taxed at 0%. There is no wealth tax and no inheritance tax.

Worldwide (residence-based) Last verified July 2026

The taxes

Estonia tax rates
Personal income (top)	22%A flat 22%, raised from 20% in 2025. There are no progressive brackets.
Corporate income	22% on distributed profits (22/78). Retained or reinvested profits are taxed at 0%.
Capital gains	22%, taxed as ordinary income
VAT / Kaibemaks (VAT)	24%
Dividends (WHT)	0% at the individual level, since CIT is paid at the company level. Regularly-distributed 14/86 dividends to individuals carry a 7% rate.
Interest (WHT)	0%
Royalties (WHT)	10%
Social security (employee)	1.6% unemployment insurance, plus an optional 2% pension pillar
Social security (employer)	33% social tax plus 0.8% unemployment insurance
Wealth tax	None
Inheritance / estate	None
Property tax	Land tax only, at about 0.1-1.0% of land value. Buildings are untaxed.

How the system works

Tax system: Worldwide (residence-based)
Foreign income: Taxed (worldwide)
Taxes by citizenship: No
Exit tax: No
CFC rules: Yes
CRS: Participating

A special regime for new arrivals

0% corporate tax on retained and reinvested profits. Distributions are taxed at 22/78, which works out to 22% of gross and 28.2% of net. The reduced 14/86 rate was abolished on 1 January 2025.

Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.