How does the Estonia salary calculator work in 2026?
The calculator converts an hourly, monthly or annual amount to a monthly equivalent and calculates gross pay, take-home pay and the employer’s total cost. It includes income tax, social tax, employee and employer unemployment insurance and the selected funded-pension rate. You can also calculate backwards from a target net salary or employer budget.
Estonia payroll tax rates for 2026
| Tax or contribution | 2026 rate |
|---|---|
| Withheld income tax | 22% |
| Social tax | 33% |
| Employee unemployment insurance | 1.6% |
| Employer unemployment insurance | 0.8% |
| Mandatory funded pension, pillar II | 2%, 4% or 6% |
| General basic exemption | up to €700 per month |
| Basic exemption at pensionable age | up to €776 per month |
| Full-time minimum wage | €886 per month until 31.03.2026; €946 per month from 01.04.2026 |
From 2026, the general basic exemption no longer decreases as income rises. An employer applies the amount stated in the employee’s written application, up to €700 per month. If another payer already applies your exemption, enter the amount actually used or €0.
The statutory minimum wage changes during 2026: from 1 January to 31 March the full-time minimum is €886 per month and €5.31 per hour; from 1 April it is €946 per month and €5.67 per hour. For part-time work, the minimum should be prorated by working time.
Example: €2,000 gross salary per month
For a €2,000 gross salary, 1.6% employee unemployment insurance, a 2% funded pension contribution and a €700 basic exemption, the result is:
- take-home pay of €1,657.84;
- total employer cost of €2,676.00;
- social tax of €660.00;
- withheld income tax of €270.16.
Taxes are rounded to cents. Actual payroll can differ when a payment includes holiday pay, sickness benefit, multiple employers, foreign social-security coverage or another statutory exception.
Rates reviewed by the ProfBalance accounting team on 8 July 2026. About our experience and working principles. Sources: Estonian Tax and Customs Board, 2026 tax rates and calculation of basic exemption. This calculator is informational and does not replace individual tax or legal advice.