Dividend Calculator 2026
Calculate net dividends after taxes in Estonia
About Dividend Taxation
Estonia taxes corporate profits only when distributed. In 2026, the CIT rate is 22% on distributed profits using the gross-up method (22/78). There is no additional personal income tax on dividends that have been taxed at the corporate level.
Frequently Asked Questions
How are dividends taxed in Estonia in 2026?
Estonia taxes distributed profits at 22% CIT using the gross-up method (dividing by 0.78). There is no additional personal income tax on standard dividends.
How does Estonia's gross-up calculation work?
The 22% CIT is calculated on the 'gross-up' amount. If you want to pay €78 net dividend, the company pays €22 CIT (78 × 22/78 = 22). The formula: tax = net dividend × 22 / 78.
Why does Estonia have 0% corporate tax?
Estonia's unique system taxes only distributed profits. Retained and reinvested profits are not taxed, encouraging company growth. When dividends are paid, 22% CIT applies to the gross-up amount.
Is there personal income tax on Estonian dividends?
For dividends taxed at the standard 22% rate, no additional PIT applies. A 7% additional tax only applies to dividends previously taxed at the reduced 14% rate (which ended in 2024).