Dividend calculator 2026
Dividend tax, and salary or dividend
How much income tax the company pays on a dividend, and what the same money costs when it is paid as salary. By the 2026 rate of 22/78.
The owners get
€10,000.00
The company pays €2,820.51 income tax, €12,820.51 in all
- The dividend
- Net dividend
- €10,000.00
- Income tax 22/78
- €2,820.51
- Cost to the company
- €12,820.51
- The same net as salary
- Gross salary
- €13,094.48
- Cost to the company
- €17,520.42
- Salary costs more by
- €4,699.91
By the Tax and Customs Board’s 2026 rules: a dividend is taxed at the company at 22/78 of the net sum, declared on TSD annex 7 and paid by the 10th of the following month. The comparison with salary uses the 2026 salary rates, the basic exemption applied and a 2 % funded pension. Rules: emta.ee.
How a dividend is taxed
In Estonia the company pays income tax on profit only when it pays it out. On a dividend that tax is 22/78 of the net sum: on a net dividend of €78 the company pays €22, €100 in all. Since 2025 there is no lower rate for regular dividends.
Salary or dividend
For the same money in the owner’s pocket, a dividend usually costs the company less than a salary. A salary, though, buys the owner health insurance and a state pension, and a dividend does not; social tax is what pays for them.
Before paying out
A dividend is paid from the profit of earlier years in the approved annual report, and the company’s net assets must stay above what the law requires. The decision is the shareholders’; your accountant checks the figures.
Frequently asked questions
If €10,000 is what the owner receives, the company pays €2,820.51 income tax, €12,820.51 in all. If €10,000 is the whole profit paid out, the owner receives €7,800 and the tax is €2,200.
An Estonian resident individual pays nothing more on a dividend the company has paid 22/78 on. The 7 % withheld on lower-rate dividends ended with that rate in 2025.
By the 10th of the month after the dividend is paid, declared on TSD annex 7 with the list of recipients on INF 1.
No. The Tax and Customs Board states that the 2 % security tax was not introduced on company profits.
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