Estonian tax changes in year 2017


The year 2017 has just started, bringing with it some changes to Estonian tax rates, which we would like you to pay attention to.

What changes
The new year will bring change to the tax-free income and also to the pension supplementary tax-free income. Also there are changes to the social tax rates and the minimum base for the social tax monthly rate.

  • Income tax rate is 20%.
  • Tax-free monthly income is 180€ (the payment recipient has to make an application to implement this).
  • The social tax rate is 32.5%. The monthly base for the social tax minimum is 430 euros, which means that the minimum social responsibility is 141.90 euros/month.

Minimum salary from 01.01.2017 is:

  • 2.78€ per hour
  • 470€ per month for full-time job

The following taxes will remain the same:

  • Additional tax-free income for accidents at work or occupational disease is 64 euros per month.
  • Additional tax-free income from a pension is 236 euros per month, which applies only for people who pay the I and II pension pillars.
  • Unemployment insurance tax rates for the employee is 1.6% and for the employer 0.8%.

Wishing Happy New Year
Aaberg Consultations