# Dividend calculator 2026 - dividend tax calculation

## Dividend taxes

-   From January 1, 2025, dividends are taxed only at the income tax rate of **22/78** [TMS § 4 lg 1](https://www.riigiteataja.ee/akt/128122017077?leiaKehtiv#para4lg1)
-   From 2025, the tax benefit for regularly paid dividends, the lower dividend income tax rate of 14/86, and the 7% income tax withholding on dividends paid to individuals are no longer applicable in Estonia.
-   When forwarding dividends taxed at a lower rate until 2024, the transitional provision must be considered. [TMS § 61 lg 68](https://www.riigiteataja.ee/akt/TuMS#para61lg68)

## What is a dividend and how is it taxed

-   A dividend is a payment to shareholders from net profit or undistributed profit
-   A resident company pays income tax at a rate of **22/78** when distributing dividends
-   Declared using form TSD annex 7 and INF 1

## When must income tax on dividends be paid?

Declaration and payment of income tax by the **10th day of the month following** the month of dividend payment