Gross to net salary calculator. No sign-up, no ads.
🇪🇪 Estonia Net Salary Calculator 2025
Estonia uses a flat 22% income tax, one of the cleanest systems in Europe. A tax-free allowance (põhimaksuvaba tulu) of up to €8,400 per year applies, but it phases out from €14,400 to €25,200 and is zero above that. In practice, most Estonian employees on typical salaries (€1,500–€2,500/month) get some benefit from it. Employee contributions are light: 1.6% for unemployment insurance and 2% for the funded II pillar pension (optional, but ~80% of employees participate). Employers carry the heavy load: social tax (33% on gross) is entirely employer-paid. At €35,000 gross (above the income range where the tax-free allowance phases to zero), an Estonian employee pays around 22% income tax and 3.6% in unemployment and pension contributions, taking home approximately €26,000. At €55,000, take-home is around €40,000.
Estonia Income Tax Brackets
Brackets apply to taxable income after the €8,400 tax-free allowance.
| Income band | Rate |
|---|---|
| €0 and above | 22.00% |
Take-home pay examples
| Gross / year | Net / year | Net / month |
|---|---|---|
| €20,000 | €16,728 | €1,394 |
| €35,000 | €27,888 | €2,324 |
| €55,000 | €42,768 | €3,564 |
| €80,000 | €61,368 | €5,114 |
Employee figures only, standard deductions applied. Pension contributions, benefits in kind, and other personal factors are not included.
Data & assumptions
- Tax year
- 2026
- Last updated
- 2026-07-17
- Employment assumption
- Full-time employee, single filer
Figures are estimates based on standard deductions and do not account for pension contributions, benefits in kind, or individual circumstances. See our methodology for how these numbers are calculated.
Frequently Asked Questions
What is the põhimaksuvaba tulu?
It's Estonia's income tax-free allowance. For 2025 it's a maximum of €8,400/year, available in full only for gross income up to €14,400. It then phases out linearly, reaching zero at €25,200. This calculator uses the maximum €8,400, which means it overstates net pay for most Estonian employees earning above €14,400.
Is the II pillar pension mandatory?
Not exactly. It was mandatory when introduced, but since 2021 employees can opt out. About 80% of employees still participate. If you opt out, you don't pay the 2% but also don't build up II pillar pension savings. The employer also stops paying the extra 4% top-up into your II pillar account.
Why is employer social tax so high in Estonia?
The 33% employer social tax funds both pension (20%) and health insurance (13%). Because it's an employer cost, it doesn't appear on your payslip, but it affects what employers can afford to offer in gross salary. Estonia deliberately shifted costs to employers when abolishing the old employee social contribution structure.
What is a good salary in Estonia?
Tallinn is Estonia's dominant economic centre; salaries outside the capital are considerably lower. A single person in Tallinn typically needs €1,500–2,500 net per month, which corresponds to roughly €24,000–40,000 gross. The national median gross salary is around €20,000–25,000 per year, though Estonia's tech sector has driven salaries significantly higher: software engineers and senior professionals in Tallinn commonly earn €40,000–90,000 gross. Estonia's digital infrastructure, e-government systems, and strong startup ecosystem have attracted international tech companies, pushing professional salaries toward Nordic levels in some sectors.
How does Estonian take-home compare to Latvia and Lithuania?
Estonia's 22% flat rate puts it in the most favourable position among the Baltic three for most income levels. Latvia's three-rate system (20%/23%/31%) produces a similar result at lower incomes but becomes more expensive at higher ones. Lithuania's non-deductible 15.7% Sodra and health contributions push Lithuanian total deductions above Estonia's for most income levels. At €35,000 gross, an Estonian employee keeps around €26,000 (74%), while a Lithuanian employee at the same gross keeps around €22,800 (65%). Estonia's advantage is most pronounced above €40,000 where Lithuania's non-deductible Sodra becomes a significant drag.
Does Estonia's e-Residency programme reduce taxes for digital businesses?
Not directly. Estonia's e-Residency card allows non-residents to establish and run Estonian companies online, but e-Residency itself does not grant Estonian tax residency. Estonian tax residency requires physical presence for 183 or more days in a 12-month period. The tax efficiency that attracts companies to Estonia is the deferred corporate tax: Estonian companies pay 0% corporate tax on retained profits and only pay 20% when dividends are distributed. For employees of Estonian companies, standard income tax (22%) and social contributions apply in the same way as for any employee.