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What is tax-free minimum?

Last updated: November 05, 2024

The tax-free minimum applies only to Estonian tax residents. Beginning from 1 January 2023 the overall tax-free minimum amount of up to 7848 euros per year or up to 654 euros per month will be applied to all types of income. The tax-free minimum amount is calculated based on the average monthly income:

  • If your average monthly income is up to 1200 EUR (gross), then the tax-free minimum amount is 654 EUR.

  • If your average monthly income is 1201-2099 EUR (gross), then the tax-free minimum amount is between 654 and 0 EUR.

  • If your average monthly income is more than 2100 EUR, then the tax-free minimum amount is 0 EUR.

The tax-free minimum can only be calculated and applied by one employer according to a person’s application. An employee who works at several jobs shall have to take into account that he/she is entitled to use the tax-free minimum on one job only. Therefore, if you already have taken into account the tax-free minimum on your other job, then it is not possible to use the tax-free minimum on the Xolo Go withdrawal. You can find more information regarding the tax-free minimum from the Tax and Customs Board website.

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