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Estonia

#1 overall · Score 100.0 / 100 · unchanged from 2025

Overall

#1

100.0 / 100

unchanged from 2025

Corporate

#2

96.0 / 100

unchanged from 2025

Individual

#1

100.0 / 100

up one place from 2025

Consumption

#24

53.5 / 100

down two places from 2025

Property

#1

100.0 / 100

unchanged from 2025

Cross-border

#7

82.8 / 100

unchanged from 2025

Strengths

  • Estonia's corporate income tax system only taxes distributed earnings, allowing companies to reinvest their profits tax-free.
  • The VAT applies to a broad base and has a low compliance burden.
  • Property taxes only apply to the value of land.

Weaknesses

  • Estonia has tax treaties with just 62 countries, below the OECD average (75 countries).
  • Estonia's territorial tax system is limited to European countries.
  • Estonia's thin capitalization rules are among the more stringent ones in the OECD.

Component Scores

Estonia category scores out of 100Corporate Taxes: score 96.0, rank 2. Individual Taxes: score 100.0, rank 1. Consumption Taxes: score 53.5, rank 24. Property Taxes: score 100.0, rank 1. Cross-Border Tax Rules: score 82.8, rank 7255075100Corporate Taxes: 96.0 (rank 2)Individual Taxes: 100.0 (rank 1)Consumption Taxes: 53.5 (rank 24)Property Taxes: 100.0 (rank 1)Cross-Border Tax Rules: 82.8 (rank 7)CorporateIndividualConsumptionPropertyCross-border
Category Rank Score vs 2025
Corporate Taxes #2 96.0 unchanged from 2025
Individual Taxes #1 100.0 up one place from 2025
Consumption Taxes #24 53.5 down two places from 2025
Property Taxes #1 100.0 unchanged from 2025
Cross-Border Tax Rules #7 82.8 unchanged from 2025

Ranking Changes, 2014–2026

Estonia's best overall rank was 1st and its worst was 1st. It ranks 1st in 2026.

Overall rank by year for EstoniaEstonia: 2014 rank 1, 2015 rank 1, 2016 rank 1, 2017 rank 1, 2018 rank 1, 2019 rank 1, 2020 rank 1, 2021 rank 1, 2022 rank 1, 2023 rank 1, 2024 rank 1, 2025 rank 1, 2026 rank 12014201520162017201820192020202120222023202420252026Estonia 2014: rank 1Estonia 2015: rank 1Estonia 2016: rank 1Estonia 2017: rank 1Estonia 2018: rank 1Estonia 2019: rank 1Estonia 2020: rank 1Estonia 2021: rank 1Estonia 2022: rank 1Estonia 2023: rank 1Estonia 2024: rank 1Estonia 2025: rank 1Estonia 2026: rank 1#1#1

OECD Context

Each row places all 38 countries on a 0–100 score scale for one measure. Estonia is highlighted; the dashed line is the OECD median.

All 38 Countries' Ranks

Overall and category ranks for all 38 countries
CountryOverallCorporateIndividualConsumptionPropertyCross-border
Estonia#1#2#1#24#1#7
Latvia#2#1#8#22#4#6
New Zealand#3#31#7#1#8#14
Switzerland#4#7#9#4#36#2
Lithuania#5#3#10#23#6#16
Luxembourg#6#20#21#7#15#5
Czech Republic#7#9#4#32#5#11
Australia#8#29#14#9#3#23
Turkey#9#21#6#15#22#8
Hungary#10#5#3#38#23#4
Israel#11#11#31#11#10#18
Slovak Republic#12#24#2#33#7#17
Sweden#13#6#18#26#9#12
Costa Rica#14#35#13#6#11#29
Canada#15#17#28#8#25#28
Netherlands#16#23#30#14#20#3
United States#17#8#17#3#27#37
Austria#18#18#27#17#17#10
Germany#19#30#34#13#12#9
Norway#20#15#29#27#16#15
Mexico#21#28#26#12#2#38
Finland#22#10#24#28#21#24
Greece#23#22#5#29#30#19
Chile#24#32#23#10#13#36
Slovenia#25#14#12#30#24#30
Korea#26#26#38#2#31#34
Belgium#27#16#15#25#28#21
Japan#28#36#35#5#26#31
Ireland#29#4#36#35#18#27
United Kingdom#30#25#22#34#33#1
Denmark#31#19#37#20#14#32
Poland#32#12#11#36#29#25
Portugal#33#34#19#21#19#33
Iceland#34#13#32#19#34#26
Spain#35#33#20#18#35#20
Italy#36#27#16#37#38#22
Colombia#37#37#25#16#37#35
France#38#38#33#31#32#13

Among European Peers

Estonia ranks 1st of 27 European OECD members on the overall index.

Source: 2026 International Tax Competitiveness Index.

Notes on the Data

The 2026 Index uses the most up-to-date data available as of July 2026. Data may not reflect changes in countries making rapid reforms.

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About the Authors

Alex Mengden Tax Foundation
Expert

Alex Mengden

Economist

Alex Mengden is an Economist at the Tax Foundation, where he focuses on international tax issues and tax policy in Europe. He holds a BA in philosophy and economics from the University of Bayreuth and an MSc in economics from the Ludwig Maximilian University of Munich.

Tax Foundation Staff

Luis Zarka

Transatlantic Tax Fellow

Luis Zarka was a 2026 Transatlantic Tax Fellow with the Tax Foundation’s Center for Global Tax Policy.

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Sarah Wilbur

Communications Manager

Sarah Wilbur is Communications Manager at the Tax Foundation where she advances the organization’s institutional reach by developing its corporate communications and media programs.

Jesse Solis Tax Foundation

Jesse Solis

Vice President of Communications

Jesse Solis is Vice President of Communications at the Tax Foundation, where he leads the communications team and works to build coverage of Tax Foundation’s experts and their work across the globe. He joined the team in 2021 as Communications Manager and became Communications Director in 2024.