Dividend calculator
Work out the tax on a dividend and the net payout
Enter an amount and see at once what the owner receives, what goes to income tax and what it costs out of distributable profit. The rate is 22/78 — the only one since 2025.
- Works both ways: from the net payout or from profit
- 22/78 means 22% of profit and 28.21% of the payout
- The reduced 14/86 rate and the 7% withholding are gone
- 22/78
- the tax rate
Dividend calculator
The reduced 14/86 rate on regular dividends that applied until 2025 is abolished, and so is the 7% withheld from payments to natural persons.
- The owner receives
- 10,000.00 €
- Income tax, paid by the company22/78
- 2,820.51 €
- Total taken out of profit
- 12,820.51 €
22.00 %
of the distributable profit
28.21 %
of the net payout
The dividend is declared in Annex 7 to the TSD return and on form INF 1 by the 10th of the month following the payment.
This is an estimate and does not replace tax advice.
This is an estimate. A dividend may only be paid on a shareholders' resolution and only out of profit confirmed by an approved annual report.
Why there are two percentages and both are right
The 22/78 rate is applied to the net payout: if the owner receives 78, the income tax is 22 and 100 leaves the profit. The same figure therefore looks two ways — 22% of distributable profit and 28.21% of the payout.
This is where most arguments with an accountant start. Someone saying “dividend tax is 22%” means the profit. Someone saying “28%” means the money that reaches the owner. Both are correct, the base differs.
The calculator shows both at once so an agreement does not hang on a misunderstanding.
What changed in 2025
Until the end of 2024 a reduced 14/86 rate applied to regular dividends, and in that case a further 7% income tax was withheld from a natural person. From 1 January 2025 only 22/78 applies and nothing is withheld.
That means old calculations no longer hold. If your spreadsheet still has 14/86 or a 7% line, it gives the wrong answer — and some calculators online still show the old rates.
Frequently asked questions
The rate is 22/78 of the payout, which is 22% of distributable profit. There are no other rates from 2025.
No. A dividend is not salary, so no social tax is charged. That also means a dividend gives the recipient no health insurance and no pension qualifying period — worth calculating if the owner takes no salary at all.
By the 10th of the month following the payment: Annex 7 to the TSD return and form INF 1, with the tax due on the same date.
It may be paid out of profit confirmed by an approved annual report, and only on a shareholders' resolution. Without a filed report no dividend can be paid.
From 2025 a non-resident's dividend income is not taxed again in Estonia — the tax is already paid at company level. A liability may still arise in the country of residence.