Mileage compensation calculator — Estonia, 2026
Enter your business kilometres for the month. The calculator shows the tax-free compensation, anything above the 550 € monthly cap, and the employer’s estimated tax on it.
Your month
Only work-related kilometres — the ones written down in the sõidupäevik (mileage log).
0.50 €/km is the tax-free ceiling, not a required rate — an employer may agree on less.
550 € per calendar month, per employer.
Result
- Compensation in total (0.50 €/km)
- 500.00 €
- Kilometres inside the cap
- 1,100 km per employer
- Above the cap (fringe benefit)
- 0.00 €
- Employer’s tax on the excessestimateIncome tax 0.00 € + social tax 0.00 €
- 0.00 €
Nothing above the cap — the whole compensation is tax-free.
What you need to prove it
The tax-free rate rests on a sõidupäevik (mileage log) with four mandatory fields: the recipient’s first and last name, the make and registration number of the car, the date, destination and purpose of every trip, and the odometer reading at the start and at the end of it. The employer also needs a written decision, and files form INF 14 once a year.
Read the sõidupäevik guide for Estonia →Examples at 0.50 €/km with a 550 € monthly cap
| Business km / month | Compensation | Tax-free | Above the cap | Employer’s tax |
|---|---|---|---|---|
| 300 km | 150.00 € | 150.00 € | 0.00 € | 0.00 € |
| 800 km | 400.00 € | 400.00 € | 0.00 € | 0.00 € |
| 1,100 km | 550.00 € | 550.00 € | 0.00 € | 0.00 € |
| 1,500 km | 750.00 € | 550.00 € | 200.00 € | 141.03 € |
1,100 km a month is exactly the cap: 1,100 × 0.50 € = 550 €. Every kilometre after that is taxed as a fringe benefit.
Frequently asked questions
- What happens if the compensation goes above 550 € a month?
- The part above 550 € is no longer tax-free — it is treated as a fringe benefit (erisoodustus). The employer pays income tax on it (the excess × 22/78) and social tax of 33 % on the excess plus that income tax. The employee can still be paid in full; the tax lands on the employer. The cap applies per employer, so someone with two employers has two independent 550 € limits.
- Can the rate be lower than 0.50 €/km?
- Yes. 0.50 €/km is the ceiling of the tax-free rate, not a mandatory rate. An employer may agree on 0.30 €/km, and that stays fully tax-free because it is below the limit. A higher rate is allowed as well, but everything above 0.50 €/km is a fringe benefit. Change the rate field above to see your agreed figure.
- Does a FIE (sole proprietor) have a monthly cap?
- No. The 550 € cap applies to compensation paid by an employer. A FIE does not pay themselves compensation — they deduct the actual costs of the car from business income in proportion to business kilometres ÷ total kilometres (Form E), with no monthly or annual cap. A mileage log is still required: it is what proves the proportion.
This calculator is informational and follows the Estonian rules for 2026: a tax-free rate of up to 0.50 €/km and a cap of 550 € per calendar month, per employer. The tax figures are an estimate — income tax is the excess × 22/78, social tax is 33 % of (excess + income tax). This is not tax advice; the binding calculation is your accountant’s or EMTA’s.