Finland vs Estonia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ซ๐ฎ Finland โ Municipal Income Tax
Finland's 309 municipalities set their own income tax rates (municipal tax) ranging from ~16.5% to ~22.5%, averaging ~20%. This is added to the national progressive income tax. The church tax of 1%โ2.2% applies to members. No regional income tax. The 'solidarity tax' on high earners (2%) applies nationally. Municipalities also levy real estate tax on property owners. The welfare state is heavily funded by these high combined tax rates.
๐ช๐ช Estonia โ Local Income Tax Supplement
Estonia's 79 local governments levy a local income tax supplement of 11.4% of taxable income (2024), collected alongside the national 20% income tax. Together these form the effective total income tax. Estonia's unique fully distributed profit taxation system means companies pay no corporate income tax on retained earnings โ only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%โ2.5% of assessed land value by municipalities.
Finland vs Estonia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ซ๐ฎ Finland has a higher top income tax rate (~44โ51.4% vs 22%). ๐ช๐ช Estonia is more favourable for high earners.
๐ VAT/Sales Tax: Finland has a higher consumption tax (10โ25.5% vs 9โ24%).
๐ข Corporate Tax: ๐ซ๐ฎ Finland offers a lower corporate rate (20% vs 22%), which can influence business location decisions.
๐ Capital Gains: ๐ช๐ช Estonia taxes investment gains at a lower rate (22% vs 34%), benefiting investors.