Tax incentives from 2021 to 2024
In 2024, the overall basic exemption is up to 654 euros per month, and it decreases as a person's income increases. However, the basic exemption during the pensionable age is a fixed amount – 776 euros per month and it does not depend on the amount of the person's income.
The following can be deducted from taxable income:
- contributions to a mandatory funded pension and unemployment insurance premiums – accounted for during the year, excl. sole proprietors’ contributions to a mandatory funded pension;
- contributions to a voluntary funded pension – deduction limit of 15% is applied, but no more than 6,000 euros per year;
- mandatory foreign social security contributions;
- increased basic exemption of up to 5,000 euros from the income derived from the sale of timber felled from an immovable belonging to a forest owner and the transfer of the right to cut the standing crop growing there as well as Natura 2000 support for private forest land after the deductions related to forest management have been made;
- training expenses;
- gifts, donations.
Training expenses, gifts and donations can be deducted from the income in an extent of up to 1,200 euros. Deductions cannot exceed 50% of the taxpayer’s taxable income in Estonia for the same period of taxation.
In 2023, the overall basic exemption is up to 654 euros per month, and it decreases as a person's income increases. However, the basic exemption during the pensionable age is a fixed amount – 704 euros per month and it does not depend on the amount of the person's income.
The following can be deducted from taxable income:
- contributions to a mandatory funded pension and unemployment insurance premiums – accounted for during the year, excl. sole proprietors’ contributions to a mandatory funded pension;
- contributions to a voluntary funded pension – deduction limit of 15% is applied, but no more than 6,000 euros per year;
- mandatory foreign social security contributions;
- increased basic exemption for spouse (if the spouse’s annual income is less than 2,160 euros and if the spouses’ total annual income does not exceed 50,400 euros) is 2,160 euros and the spouse’s annual income difference;
- increased basic exemption upon provision of maintenance to child – the amount is 1,848 euros for the second child and 3,048 euros starting from the third child. Increased basic exemption is not reduced if the child receives a survivor’s pension or a national pension upon loss of a provider;
- increased basic exemption of up to 5,000 euros from the income derived from the sale of timber felled from an immovable belonging to a forest owner and the transfer of the right to cut the standing crop growing there as well as Natura 2000 support for private forest land after the deductions related to forest management have been made;
- housing loan interests on loans taken for the purchase of a home – in the amount of 300 euros;
- training expenses;
- gifts, donations.
Housing loan interests, training expenses, gifts and donations can be deducted from the income in an extent of up to 1,200 euros. Deductions cannot exceed 50% of the taxpayer’s taxable income in Estonia for the same period of taxation.
The following can be deducted from taxable income:
- contributions to a mandatory funded pension and unemployment insurance premiums – accounted for during the year, excl. sole proprietors’ contributions to a mandatory funded pension;
- contributions to a voluntary funded pension – deduction limit of 15% is applied, but no more than 6,000 euros of tax-free income per year;
- mandatory foreign social security contributions;
- increased basic exemption for spouse (if the spouse’s annual income is less than 2,160 euros and if the spouses’ total annual income does not exceed 50,400 euros) is 2,160 euros and the spouse’s annual income difference;
- increased basic exemption upon provision of maintenance to child – the amount is 1,848 euros for the second child and 3,048 euros starting from the third child. Increased basic exemption is not reduced if the child receives a survivor’s pension or a national pension upon loss of a provider;
- increased basic exemption of up to 5,000 euros from the income derived from the sale of timber felled from an immovable belonging to a forest owner and the transfer of the right to cut the standing crop growing there as well as Natura 2000 support for private forest land after the deductions related to forest management have been made;
- housing loan interests on loans taken for the purchase of a home – in the amount of 300 euros;
- training expenses;
- gifts, donations.
Housing loan interests, training expenses, gifts and donations can be deducted from the income in an extent of up to 1,200 euros. Deductions cannot exceed 50% of the taxpayer’s taxable income in Estonia for the same period of taxation.
The following can be deducted from taxable income:
- contributions to a mandatory funded pension and unemployment insurance premiums – accounted for during the year, excl. sole proprietors’ contributions to a mandatory funded pension;
- contributions to a voluntary funded pension – deduction limit of 15% is applied, but no more than 6,000 euros of tax-free income per year;
- mandatory foreign social security contributions;
- increased basic exemption for spouse (if the spouse’s annual income is less than 2,160 euros and if the spouses’ total annual income does not exceed 50,400 euros) is 2,160 euros and the spouse’s annual income difference;
- increased basic exemption upon provision of maintenance to child – the amount is 1,848 euros for the second child and 3,048 euros starting from the third child. Increased basic exemption is not reduced if the child receives a survivor’s pension or a national pension upon loss of a provider;
- increased basic exemption of up to 5,000 euros from the income derived from the sale of timber felled from an immovable belonging to a forest owner and the transfer of the right to cut the standing crop growing there as well as Natura 2000 support for private forest land after the deductions related to forest management have been made;
- housing loan interests on loans taken for the purchase of a home – in the amount of 300 euros;
- training expenses;
- gifts, donations.
Housing loan interests, training expenses, gifts and donations can be deducted from the income in an extent of up to 1,200 euros. Deductions cannot exceed 50% of the taxpayer’s taxable income in Estonia for the same period of taxation.
Last updated: 09.01.2024