Dividend calculator 2026
Calculate the income tax on dividends and the distributable profit needed. In Estonia distributed profit is taxed at the 22/78 rate.
Distributed profit is taxed at the 22/78 rate (income tax is 22% of the gross amount).
Calculations are based on Estonia's tax rates in force for 2026. Results are informational.
Sources: Maksu- ja Tolliamet (EMTA)
Last updated: 2026-06-03
How are dividends taxed?
In Estonia distributed profit is taxed at 22% income tax, calculated on the gross amount (22/78 of the net payout). To pay an owner 10,000 € net, you must distribute 12,820.51 € of profit and pay 2820.51 € in income tax. The earlier reduced 14% rate was abolished in 2025.
How it is calculated
Formula
tax on dividend = gross × 22% = net × 22 ÷ 78; net = gross − tax
Rates used
Example
Gross 1000 € → tax 220 € → payout 780 €.
Example 1: the owner wants to receive 5000 €
If you know how much must land in the owner's account, choose "From net payout".
The 28.2% under the headline is the tax as a share of the net dividend, which is simply 22/78 rounded. The same percentage applies to any amount: for 3000 € net the tax is 846.15 € and the distributable profit 3,846.15 €.
The same logic works for planning over a longer period. If the owner wants to receive 20,000 € over a year, the company has to distribute 25,641.03 € and pay 5,641.03 € of income tax. Because the tax is proportional to the net amount, it makes no difference whether the payout is made at once or in several parts, apart from rounding to the cent.
The calculator works backwards to the share of profit that has to be distributed:
- Distributable profit (gross): 5000 ÷ 0.78 = 6,410.26 €.
- Income tax: 6,410.26 × 22% = 1,410.26 €.
- Cross-check: 5000 × 22 ÷ 78 = 1,410.26 €.
- In total 6,410.26 € leaves the company and the owner receives 5000 €.
Example 2: distributing 25,000 € of profit
If the shareholders decide to distribute a set amount of profit, choose "From distributable profit". On 25,000 € the tax is 25,000 × 22% = 5,500 € and 19,500 € is paid out to the owners. In this direction the maths is plain multiplication, because the 22% is taken from the gross amount.
With several shareholders, the net figure is split according to their holdings. Shareholders with 60% and 40% stakes receive 11,700 € and 7,800 € of the 19,500 €. The calculator itself does not distinguish shareholders, because the tax is the same for the payout as a whole.
When planning cash, remember that the whole distributable profit leaves the company account, not just the owners' share. Distributing 25,000 € requires 19,500 € for the payouts and 5,500 € for the income tax. If the account holds exactly the net amount, there will be nothing left for the tax.
The most expensive mistake: 22% of the net
Many people work out dividend tax by multiplying the owner's payout by 22%. For 5000 € net that gives 1,100 €, but the correct tax is 1,410.26 €. The 310.26 € shortfall has to be paid later. The larger the payout, the bigger the error: at 19,500 € net the gap is already over 1,200 euros.
The mistake happens because 22% is a rate on the gross amount. Measured against the net, the real rate is 22/78, about 28.21%. The calculator's two modes exist so you do not have to keep track of which amount is being discussed. Before typing, decide whether your number is what the owner receives or what is set aside from profit for distribution.
Dividend or salary: the same 3000 € two ways
Business owners often ask whether to take money out as salary or as a dividend.
In pure cash terms the dividend leaves 500.08 € more. However, no social tax is paid on a dividend, so it does not build up the health and pension insurance that social tax funds. A dividend can only be paid when the company has distributable profit, while salary is paid for work regardless of profit. The right choice depends on your situation, and this example is not tax advice.
The calculators let you compare what is left of 3000 € in each case:
- Salary: a total employer cost of 3000 € allows a gross of 2,242.14 € and a net of 1,839.92 € (2% II pillar, exemption applied).
- Dividend: on 3000 € of distributable profit the tax is 660 € and the owner keeps 2,340 €.
- Combination: a gross salary of 886 € costs the company 1,185.47 € and yields 820.20 € net. The remaining 1,814.53 € as a dividend gives 1,415.33 € after 399.20 € of tax, for a total of 2,235.53 € in hand.
The year selector and earlier rates
In 2023 and 2024 the income tax rate was 20%, so the tax was 20/80, or 25% of the net amount. A 5000 € net dividend in 2024 required distributing 6,250 € with a tax of 1,250 €. At the 2026 rate the same payout carries 1,410.26 € of tax, which is 160.26 € more.
The calculator does not apply the former reduced 14% rate for regular dividends, not even when an earlier year is selected. If a payout back then qualified for the reduced rate, the calculator's result is higher than what was actually due.
What the calculator does not check
The calculator only works out the relationship between tax and the amount distributed. Before paying out, check separately:
- Whether the company has enough profit to distribute and whether the payout decision has been properly documented.
- Whether enough cash remains after the payout for day-to-day operations and liabilities.
- How the payout is split between shareholders, since the calculator only shows the total.
- Cents: if you split the amount into several payouts, rounding each part separately can change the total tax by a cent.
Frequently asked questions
What is the dividend tax in 2026?+
Distributed profit is taxed at 22% income tax, calculated on the gross amount (22/78 of the net payout).
Is there a reduced dividend rate?+
No, the earlier 14% rate for regular dividends was abolished in 2025. A single 22% rate applies.
How much profit to distribute for 10,000 € net?+
You must distribute 12,820.51 € of profit and pay 2820.51 € in income tax.