Dividend Tax Calculator
In Estonia, dividends are taxed at the company level at a single rate of 22/78 (since 2025, also in 2026). The former reduced rate of 14/86 no longer applies. No additional income tax is generally withheld from the net dividend paid to the shareholder.
Note! The calculator uses the 22/78 rate in force in 2026. The result is approximate; in special cases (e.g. distributing profit taxed at the lower rate before 2025) transition rules may apply.
Calculate how much income tax is paid on a dividend and how much the owner receives. The calculator uses the 22/78 rate in force in 2026 and works both ways – from distributable profit to net dividend and back.
How are dividends taxed in 2026?
In Estonia, dividends are taxed at the company level, not at the shareholder level. This means the company pays income tax on the distributed profit, and no additional income tax is generally withheld from the net dividend paid to the shareholder.
Since 1 January 2025 (and also in 2026) a single income tax rate of 22/78 applies. The former reduced rate of 14/86 for regularly distributed dividends (and the related 7% withholding for individuals) has been abolished.
What does 22/78 mean?
The 22/78 rate means the tax is calculated on the net amount the company pays out. If a company wants to pay a shareholder a net dividend of €7,800, the income tax is 7,800 × 22/78 = €2,200, and the total distributable profit is €10,000. In other words: of the gross distributable profit, tax makes up 22% and the net dividend 78%.
Example: if a company has €10,000 of profit to distribute, the income tax is €2,200 and the shareholder receives €7,800.
How do dividends compare with salary and company value?
A dividend is one way for an owner to take income, salary is another. Each has a different tax burden, so it is worth comparing them – you can calculate the tax burden on salary with our salary calculator. If you are considering selling the company, the distribution policy also affects cash flow and value; estimate it with the company valuation calculator.
Frequently asked questions
Dividends are taxed at 22/78, which equals 22% of the gross distributable profit. For example, on €10,000 of distributable profit the income tax is €2,200 and the net dividend is €7,800.
It is a way of expressing that the tax is calculated on the net amount paid out: tax = net dividend × 22/78. Of the gross profit, tax makes up 22% and the net dividend 78%. The effective tax rate on the gross amount is therefore 22%.
No. The reduced rate of 14/86 for regularly distributed dividends was abolished from 2025. All dividends are now taxed at a single rate of 22/78. The only exception is distributing profit that was taxed at the lower rate before 2025, where transition rules may apply.
Generally no. Because the tax is paid at the company level at the 22/78 rate, no additional income tax is withheld from the net dividend paid to an individual. The exception is transition cases under the old 14% regime.
Multiply the distributable profit by 0.78. For example, €10,000 × 0.78 = €7,800 net dividend, and the tax is €10,000 × 0.22 = €2,200. The other way around: to pay a specific net amount, divide it by 0.78 to find the required distributable profit.
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