Estonia will raise its income tax rate by 2 percentage points in 2026 to replace an administratively burdensome security tax, under legislation passed Wednesday by parliament.
The country’s income tax, which companies only pay on distributed profits, will increase to 24% in 2026, from 22%.
The country’s simplified business income tax on annual incomes of up to 25,000 euro ($28,771) will also increase next year, to 22%, from 20%.
The tax changes replace a 2% security tax that would have been charged on both corporate and personal incomes from Jan. 1, 2026.
The aim is to ...
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