How are the taxes for Estonian tax residents calculated?

Last updated: March 11, 2021

Here's an example: you are an Estonian tax resident and you have 1000 EUR on your Xolo Go account and you want to withdraw it. First the Xolo fee of 5% applies to the withdrawal, meaning that the taxes are calculated based on 950 EUR. Assuming that you want to take into account the tax free minimum and you have joined Estonian funded pension system, then the taxes are calculated as follows:

  • Total cost: 950 EUR

  • Social tax: 234.3 EUR

  • Unemployment insurance contribution (employer): 5.68 EUR

  • Funded pension: 14.2 EUR

  • Unemployment insurance contribution (employee): 11.36 EUR

  • Income tax: 36.89 EUR

  • Net withdrawal: 647.56 EUR

Therefore, based on the example you would receive 647.56 EUR to your personal bank account and related taxes in amount of 302.44 EUR would be paid to the tax authorities. You can use a standard calculator to calculate the taxes and net withdrawal amount (please tick the Salary/Wage Fund).

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