Estonia self-employed net income calculator (FIE)
Your net income as an Estonian FIE is business income minus 22% income tax, a 2% additional security tax, and 33% social tax — which is charged on an annual minimum base even if you earn very little.
Worked example: with Annual business income of 40,000, this model computes Net income / year 17,200. See the full breakdown.
⚠ Illustrative rates Updated for 2026 · sources checked 2026-08-22
How fie in Estonia is calculated
Estonia's FIE (Füüsilisest isikust ettevõtja) sole-proprietor structure is otherwise one of the simplest in the region — flat 22% income tax, no separate corporate layer — except for one detail that catches new FIEs off guard: social tax has a minimum annual base regardless of actual income.
In 2026 that minimum base is 10,632 EUR, meaning any FIE with any business activity owes at least 3,508.56 EUR of social tax a year even on a few hundred euros of income. Above that floor, social tax is simply 33% of business income, on top of the 22% income tax and a new 2% additional security tax introduced for 2026.
The practical effect is that FIE income under roughly 10,632 EUR a year carries a punishing effective rate, while income comfortably above it behaves like a predictable flat-rate system — which is why many Estonian freelancers with variable income prefer an OÜ (private limited company) instead, where tax is deferred until profit is distributed.
Worked example
| Annual business income (EUR) | 40000 |
|---|---|
| Social tax (33%, min. applies) ✓ | 13200 |
| Income tax (22%) ✓ | 8800 |
| Additional Tax ✓ | 800 |
| Net income / year ✓ | 17200 |
Every row is computed by the engine from the inputs above. Rows marked ✓ are additionally pinned by a published self-test vector.
Frequently asked questions
How much net income from 40,000 EUR business income in Estonia?
Social tax (33%) is 13,200 EUR, income tax (22%) is 8,800 EUR and the additional security tax (2%) is 800 EUR, leaving 17,200 EUR net — well above the point where the social tax minimum matters.
What is the social tax minimum?
At least 3,508.56 EUR a year (33% of a 10,632 EUR minimum base) regardless of how little the FIE actually earns — the single detail that makes low-income FIE status expensive relative to employment.
Is a FIE or an OÜ better for a freelancer?
A FIE is simpler to set up and run, but taxes every euro of profit immediately. An OÜ defers tax until profit is distributed as dividends, which suits variable or reinvested income better — this page models the FIE side only.
Sources
- Estonian Tax and Customs Board — Self-employed persons, income tax · checked 2026-08-22
- Estonian Tax and Customs Board — Social tax · checked 2026-08-22
Estimate. Not tax advice. The rates in this calculator are illustrative: they reproduce the shape of the charge through 2 self-test cases, but they are not the official schedule, so the amount shown will not match your bill. Use the official source above for that.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 2 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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