Salary calculator · 2026 rates
Estonia salary calculator 2026: from gross to net
Enter a gross salary and see at once what the employee takes home, what goes to taxes and what the hire costs the employer. The calculation is shown line by line, so it also works for checking a payslip.
- Basic exemption €700 a month, the same for everyone from 2026
- Second pillar rate of your choice: 2%, 4% or 6%, plus the pensionable-age case
- The same calculation on 2025 rates, so the two years sit side by side
Calculate a salary
Gross is the figure in the employment contract. Net is what lands in the bank account.
The figure written in the employment contract
Second pillar contribution
Take-home
1,759.35 €
21,112.20 € per year
Employer cost
2,856.63 €
Effective tax rate
38.4%
Line by line
Income tax is not 22% of gross. The unemployment premium and the second pillar contribution come off first, then the basic exemption, and only the remainder is taxed.
How it works
Why income tax is not 22% of gross
The most common mistake is to multiply gross by 22 per cent. That gives the wrong figure, because income tax is charged not on gross but on what remains after two withholdings and the basic exemption.
The order runs like this. First the employee unemployment insurance premium of 1.6% comes off the gross. Then the second pillar pension contribution, whose rate the employee chooses: 2%, 4% or 6%. Only then is the basic exemption deducted, €700 a month in 2026. What is left is taxable income, and income tax of 22% is charged on that.
An example. Gross €1,000. Unemployment insurance €16, second pillar at 2% is €20, leaving €964. Deduct the €700 basic exemption and taxable income is €264, so income tax is €58.08. Take-home pay is €905.92.
Employer cost runs the other way: social tax of 33% and employer unemployment insurance of 0.8% are added on top of gross. The employee never sees these, but for the company they are part of the same payroll cost.
Rates
Payroll tax rates: 2026 and 2025
The calculator runs on exactly these figures. The table reads them from the same file as the calculation.
| Parameter | 2026 | 2025 |
|---|---|---|
| Income tax | 22% | 22% |
| Basic exemption per month | 700 € | 654 € |
| Basic exemption at pensionable age | 776 € | 776 € |
| Social tax | 33% | 33% |
| Minimum monthly social tax base | 886 € | 820 € |
| Minimum monthly social tax liability | 292,38 € | 270,60 € |
| Unemployment insurance, employee | 1,6% | 1,6% |
| Unemployment insurance, employer | 0,8% | 0,8% |
| Minimum wage per month | 946 € | 886 € |
| Minimum hourly rate | 5,67 € | 5,31 € |
The employee chooses the second pillar rate: 2%, 4% or 6%.
Rates verified against the Estonian Tax and Customs Board and Riigi Teataja. The minimum wage of €946 a month and €5.67 an hour applies from 1 April 2026.
What the calculator accounts for
Six things that move the take-home figure
Basic exemption
€700 a month. From 2026 it no longer depends on income: the tax hump has been abolished.
Pensionable age
Basic exemption of €776 a month, and no employee unemployment premium is withheld.
Second pillar rate
2%, 4% or 6%. A higher rate lowers take-home pay but builds the pension faster.
Minimum social tax
The monthly liability of €292.38 is computed on a base of €886. Below that salary the employer still pays the minimum.
Employer cost
Gross plus social tax of 33% and employer unemployment insurance of 0.8%. That is the real cost of the hire.
Effective tax rate
Shows what share of the employer cost goes to taxes. It rises with salary, because the exemption is the same for everyone.
What changed in 2026
Three changes you can see in the take-home figure
The tax hump is gone. The basic exemption used to shrink as income grew and disappeared altogether on higher salaries. From 2026 it is €700 a month for everyone and no longer depends on annual income.
Income tax stayed at 22 per cent. The planned rise to 24 per cent did not happen, and the two per cent security tax is not charged on salaries or pensions.
The minimum wage rose to €946 a month and €5.67 an hour, effective 1 April. The minimum monthly social tax liability is €292.38, computed on a base of €886.
Frequently asked questions
Yes, that is the most common use. The calculator shows the same lines that have to match the payslip: gross, unemployment insurance, the second pillar contribution, income tax and take-home pay. If the amount that arrived differs from what you expected, the breakdown shows where the gap appears.
Gross is the figure written in the employment contract, including allowances and bonuses. Net is what reaches the bank account after the unemployment premium, the second pillar contribution and income tax have been withheld.
€700 a month, that is €8,400 a year. At pensionable age it is €776 a month, or €9,312 a year. Unlike the earlier rules it no longer tapers as income rises.
Social tax of 33% is paid by the employer on top of gross; nothing is withheld from the employee. It is invisible to the employee but a direct payroll cost for the company.
Social tax carries a minimum monthly liability: €292.38 in 2026, computed on a base of €886. If gross is lower, the employer still pays the minimum. Exceptions exist, for instance a partial month.
No. It gives an indicative result. It does not keep employee records, produce payslips or file the TSD return. That is what the payroll service is for, and it includes keeping the employment register in order.
Payroll
Hand payroll over to us
If the sums are done by hand every month, it is simpler to hand the whole thing over. You send the data, we calculate salaries and taxes, produce payslips and file the returns on time.