Estonia Income Tax Calculator 2026 — IIT 20%
Calculate personal income tax (IIT) in Estonia. A flat 20% rate applies to annual income above the annual allowance of EUR 7,848 (EUR 654/month). No progressive brackets, no surtaxes.
Estonia Tax System
Personal Income Tax (IIT) in Estonia uses a simple flat rate of 20% on taxable income. Every resident receives an annual basic allowance of EUR 7,848 (EUR 654 per month). The taxable income is the portion of annual income exceeding this allowance. There are no additional brackets, surcharges, or local income taxes. Estonia's simple system is often cited as one of the most efficient in Europe.
2026 Rates: IIT 20% flat, Annual Allowance EUR 7,848, no surtaxes.
Estonia Income Tax Calculator 2026 — IIT 20%
Calculate income tax in Estonia 2026. Flat IIT 20% with annual allowance EUR 7,848.
Annual Income€40,000.00
Annual Allowance€7,848.00
Taxable Income€32,152.00
IIT (20%)€6,430.4016.1% effective
Net Income After Tax€33,569.60