Statute · Estonia income tax code
Personal income tax
Flat 22% rate on all taxable income, with no progressive brackets.
Resident brackets · single filer · EUR
| Taxable income | Rate |
|---|---|
| over 0 | 22.00% |
Comparely / CTY-DETAIL / LOADING…───
A worldwide-income jurisdiction with a progressive personal income tax and a statutory social-security charge — and a residency framework worth modelling before relocation.
Estonia applies a progressive personal income tax with a top marginal rate of 22%, alongside the country's social-security charge. The effective burden on $120,000 settles at 21.9%, leaving $93,689 in hand.
A walk through the four statutory channels by which Estonia claims part of a resident's gross compensation — followed by any special regime that overrides them.
Flat 22% rate on all taxable income, with no progressive brackets.
| Taxable income | Rate |
|---|---|
| over 0 | 22.00% |
On social security, employees pay 1.6%. Contributions are uncapped - high-income workers pay the full rate on every dollar.
| Party | Rate | Cap |
|---|---|---|
| Employee / self-employed | 1.60% | none |
| Instrument | $75k gross | $120k gross | $200k gross |
|---|---|---|---|
I. Statutory deductions | |||
Personal income tax Standard tax (no special regime) | −$14,491 | −$24,391 | −$41,991 |
Social security · employee 1.6% employee · uncapped | −$1,200 | −$1,920 | −$3,200 |
| Gross income | $75,000 | $120,000 | $200,000 |
| Total deductions | −$15,691 | −$26,311 | −$45,191 |
| Effective rate | 20.9% | 21.9% | |
Tax residency in Estonia is established by the jurisdiction's headline test[1]: physical presence of more than 183 days in a rolling twelve-month period, supplemented by permanent home in estonia or 183+ days in any 12-month period. Spouses and unemancipated minors are typically presumed to share the residency of the principal earner unless rebutted.
Once resident, any special regime is not automatic. Most jurisdictions require a formal registration with the tax authority within a defined window following arrival, together with proof of qualifying activity and a lookback period of prior non-residency. Late registration forfeits the regime for the year in question and, in some cases, for the entire benefit window.[2]
The common pitfalls are predictable. Treaty interaction with the home state can override the local regime where the home jurisdiction asserts primary taxing rights — most relevantly, United States citizens remain subject to US federal tax on worldwide income, with foreign-tax-credit relief but no escape from the higher of the two bills. Activities undertaken before registration is approved may also fall outside the regime entirely.[3]
| PPP basis · NYC = 100 | Estonia | New York · NY | Δ |
|---|---|---|---|
Cost-of-living index Indicative · placeholder until COL table ships | 55.0 | 100.0 | -45.0 pts |
Nominal net (annual · $120k) From the engine — exact | $93,689 | $77,900 | +$15,789 |
| Real net · NYC basket | $170,343 | $77,900 | +$92,443 |
Every figure in this country reference traces to a primary instrument. We publish the model and welcome correction.
Read the full note ↗Healthcare financing on the resident side is normally embedded inside the social-security charge rather than carried as a separate payroll line. The Comparely engine models healthcare as part of the social contribution unless a country exposes a distinct line item — track additions in the schema for future surfacing.
| Instrument | Rate |
|---|---|
| Dedicated health levy | — |
| Long-term care levy | — |
| Embedded in social charge | included |
No special regime relevant to digital nomads or high-income remote workers is modelled for this jurisdiction. Residents follow the default schedule above.
| 22.6% |
| Net take-home | $59,309 | $93,689 | $154,809 |
| Net · monthly equiv. | $4,942 | $7,807 | $12,901 |
Table 1 · Net take-home under the auto-picked regime, three income points, FY 2026 indicative. Highlighted column is the $120k worked example used elsewhere on the site. |
| Arrival (day 0) | Establish address; obtain tax ID |
| Day 0 – 90 | Visa application (if required) and bank account |
| Day 183 | Default residency threshold crossed |
| Year-end | Tax year closes |
| Year + 1 · Q1 | Special-regime registration window (if any) |
| Year + 1 · Q2–Q3 | First annual return |