Income Business

Salary and Tax Calculator

Calculate net salary, total employer cost, and the breakdown of payroll taxes for Estonia.

Year

Rates and options

/ Month

Monthly tax-free allowance deducted before income tax. From 2026, the general allowance is fixed and does not decrease as income increases.


In some cases, social tax must be paid at least on the monthly base used for the minimum obligation even if the gross salary is lower. Exceptions and the exact obligation depend on the employee’s status and insurance.

Enter an amount and click Calculate.

Results are informational. Calculation is based on your input and public rules, official accounting may differ. For accuracy, confirm the final result if needed from the appropriate official source or specialist.

How it works?

This calculator estimates the distribution of Estonia’s payroll taxes. Enter gross salary, desired net salary, or total employer cost — the calculator computes the remaining values.

Total employer cost = gross salary + social tax + employer unemployment insurance contribution.

Net salary = gross salary − funded pension second pillar contribution − employee unemployment insurance contribution − income tax.

Taxable income = gross salary − funded pension second pillar contribution − employee unemployment insurance contribution − tax-free allowance.

In 2025, the general tax-free allowance depends on income. From 2026, the general tax-free allowance is 700 euros per month and does not decrease as income increases. For old-age, early old-age, and flexible old-age pension recipients, the employee unemployment insurance contribution is not withheld, but the employer unemployment insurance contribution still applies. When solving backwards from net salary or from total employer cost, the calculator uses a binary search method.

Frequently asked questions

What is the general tax-free allowance in Estonia?
In 2025, the general tax-free allowance is up to 654 euros per month (7,848 euros per year) and depends on income. From 2026, the general tax-free allowance is 700 euros per month (8,400 euros per year) and does not decrease as income increases. For a person who has reached old-age pension age, the tax-free allowance is 776 euros per month (9,312 euros per year).
What is the funded pension second pillar?
The funded pension second pillar is a pension saving scheme where the employee contributes a share of gross salary. This contribution reduces taxable income because it is deducted before income tax is calculated.
How is total employer cost calculated?
Total employer cost consists of gross salary, social tax, and the employer unemployment insurance contribution. The exact rates depend on the selected year and are shown next to the options in the calculator.
Is taxation different for old-age pensioners?
Yes. For old-age, early old-age, and flexible old-age pension recipients, the employee unemployment insurance contribution is not withheld, but the employer unemployment insurance contribution still applies. The higher tax-free allowance of 776 euros per month applies to a person who has reached old-age pension age.
What is the minimum social tax obligation?
Social tax has a minimum obligation based on a fixed monthly base (for example, 886 euros per month in 2026). In some cases, social tax must be calculated at least on that base even if the gross salary is lower. Exceptions and the exact obligation depend on the employee’s status and insurance.