Fringe benefit calculator 2026
Calculate the income tax and social tax payable on a fringe benefit and the total cost to the employer.
On a fringe benefit the employer pays income tax (22/78) and social tax (33%).
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 fringe benefits taxed?
A fringe benefit is the employee's income, but the employer pays the tax. Income tax is calculated on the benefit value at the 22/78 rate (28.21%), then social tax of 33% on the benefit plus that income tax. For a 100 € benefit the income tax is 28.21 € and social tax 42.31 €, total tax 70.52 €.
How it is calculated
Formula
income tax = value × 22 ÷ 78; social tax = (value + income tax) × 33%; total cost = value + income tax + social tax
Rates used
Example
Value 100 € → income tax 28.21 € → social tax 42.31 € → total cost 170.52 €.
Frequently asked questions
What is a fringe benefit?+
A fringe benefit is a benefit with monetary value given by the employer (e.g. a company car, insurance), taxed with income tax and social tax.
Who pays the fringe-benefit taxes?+
The taxes (income tax and social tax) are paid by the employer, not the employee.