State taxes

The Estonian tax system consists of state taxes and local taxes.

State taxes include income tax, social tax, land tax, gambling tax, value added tax, customs duty, excise duties, heavy goods vehicle tax.

The main state taxes

·         Income tax

The corporate income tax is 20/80 on distributed profit.

The personal income tax is 20% of the taxable income.

·         Social tax

The rate of social tax is 33%.

The minimum obligation for social tax to be paid, in 2023, it is  215,82 EUR (monthly).

·         Value added tax

The general rate of VAT is  20%.

The reduced rate is 9%, 5% and 0% in some cases.

The threshold for obligatory registration as a taxable person is EUR 40,000.

·         Unemployment insurance premiums  is  1,6%   payable by employee and 0,8% payable by employer.

Additional information:

Estonian Tax and Customs Board

Ministry of Finance