Estonia abolishes temporary defense tax, increases several tax rates

09 July 2025|Tax Alerts, Legislation & Policy, National/Federal Taxation, Global|Estonia

On 19 June 2025, Estonia's Parliament abolished the planned temporary defense tax for 2026–2028, providing relief to businesses and individuals, with the law published in the State Gazette on 8 July 2025.
The corporate income tax rate will increase from 22% to 24% starting in 2026, applying to net dividends but not to annual profit, while dividends distributed in 2025 will still be taxed at the previous rate; also effective from 2026, the personal income tax rate will increase from 22% to 24%.
The…

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