How much tax do you get back from the third pillar?
Two limits at once — and whichever is reached first applies. Contributions to the supplementary funded pension, the third pillar, can be deducted up to 15% of your income taxable in Estonia, but no more than €6,000 a year. The deduction means money back: through the tax return you recover the income tax paid on that amount. Which limit binds you? The €6,000 ceiling matters to those earning on average more than €3,300 a month; anyone earning less should watch the 15% limit. And unlike the second pillar, you decide yourself whether, how much and at what pace to contribute.
📋 The rules
- Deduction: up to 15% of income
- But no more than €6,000 a year
- Whichever limit is reached first applies
- €6,000 matters above €3,300/month
- Contributions are voluntary
🔓 Exceptions
- Annual income includes all taxable income, board member fees included
- Those earning under 3,300 euros a month should watch the 15% limit
- The refund comes through the tax return, not automatically
⚠️ Penalties & fines
Two mistakes eat the relief. The first: paying in more than the limit allows — over 15% of income or over €6,000 — because no refund comes on the excess. The second: contributing too late: to get the refund the payment must arrive before the year ends, and banks' cut-offs fall in late December, not on the 31st. A third thing people miss: annual income includes all taxable income — not just salary, but board member fees and income under service contracts — so the 15% limit may be higher than you thought. The refund comes through the tax return, so check that your contributions appear in it.
📎 Official sources
- Tax and Customs Board · Supplementary pension →
- Pensionikeskus · Third pillar →
- Minuraha · Third pillar →
❓ Frequently asked
How much can be deducted?
Third-pillar contributions can be deducted up to 15 percent of income taxable in Estonia, but no more than 6,000 euros a year. Whichever limit is reached first applies.
Which limit applies to me?
The 6,000-euro ceiling matters to those earning on average over 3,300 euros a month. Anyone earning less should watch the 15 percent limit on their annual income.
How do I get the money back?
Through the tax return. Income tax on the contributions is refunded, but not automatically — check that the contributions appear correctly in your declaration.
What counts as annual income?
All income subject to income tax, including salary, board member fees and income under service contracts. The 15 percent limit may therefore be higher than you expected.
When must the contribution be made?
Before the end of the calendar year, and banks' deadlines usually fall in late December rather than on the 31st. A late payment counts towards next year's relief instead.
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