#Walless Tax Cookies: Estonian income tax rate to remain at 22%
2025 10 09
Good news for Estonian taxpayers! The Government has decided not to go ahead with the planned income tax rate increase from 22% to 24%, which was set to take effect on 1 January 2026. The decision covers both corporate and individual income tax.
This means the 22% rate stays (corporate income tax – 22/78 of the net distribution), giving businesses and individuals a welcome dose of stability and predictability. Meanwhile, public spending will be trimmed – with a 3% reduction planned for 2026 and 2% in 2027.
We welcome this move as a step towards maintaining Estonia’s competitive and business-friendly tax landscape.
Stay tuned – we’ll continue sharing the latest tax updates from the Baltics.
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