New
On 12 November 2025, the Riigikogu adopted amendments to the Motor Vehicle Tax Act, which reduce the motor vehicle tax liability of families with children and shorten the period of taxation of vehicles deleted from the motor register.
- Reducing the motor vehicle tax liability for a child (§ 151 of the Motor Vehicle Tax Act)
The tax liability of a parent or a natural person having legal custody of a child is reduced by up to 100 euros for each child up to the age of 18 during the tax period, but not more than the parent's total tax liability for M1 and N1 category motor vehicles. More information on the web site of the Estonian Tax and Customs Board: Reduction of tax liability of families with children. - Reduction of the period of taxation (§71 of the Motor Vehicle Tax Act)
The period of taxation for vehicles that have been deleted from the Transport Administration’s motor register (for example, vehicles destroyed, demolished, or transferred abroad) or declared wanted by the Police and Border Guard Board will be shortened, thereby reducing the annual motor vehicle tax liability. More information on the web site of the Estonian Tax and Customs Board: Reduction of the period of taxation.
From 1 January 2026, minibuses with more than seven seats (8 or 9 seats) are taxed at the category N motor vehicle tax rate in accordance with subsection 10 of § 12 of the Motor Vehicle Tax Act.The change in the tax rate calculation is not retroactive. Motor vehicle tax is calculated the same way for both legal and natural persons based on data from the motor register. More information on the web site of the Estonian Tax and Customs Board: Tax rates and calculation of tax.
From 1 January 2025, the Motor Vehicle Tax Act will enter into force. Motor vehicle tax (also known as car tax) is a national tax paid by all owners or authorised users of motor vehicles registered in the motor register.
The taxable period of motor vehicle tax is one year and the tax liability arises on 1 January of the current year or upon the first registration of a vehicle in the Estonian motor register.
The tax applies to the following categories of vehicles:
- passenger cars – M1 and M1G
- vans, pickup trucks – N1 and N1G
- motorcycles – L3e, L4e, L5e, L6e and L7e
- off-road vehicles – MS2
- wheeled tractors – T1b, T3 and T5
Motor vehicle tax notice
The Tax and Customs Board will issue a tax notice for payment of motor vehicle tax to a person who is the owner or authorised user of a motor vehicle as at 1 January.
The tax notice will be issued by 15 February at the latest in the e-services environment of the Tax and Customs Board.
If a vehicle is registered in the Estonian motor register for the first time during a taxable period (year), the obligation to pay motor vehicle tax also arises, but at a lower rate. In such a case, the tax will be calculated proportionally for the days remaining until the end of the current year and the tax notice will be issued within 15 working days after the registration of the vehicle in the motor register.
Payment of motor vehicle tax
Motor vehicle tax must be paid in two instalments during the year:
- half of the amount of tax by 15 June and
- the remaining by 15 December.
The entire amount of tax can be paid at once by 15 June or in instalments to the prepayment account. The tax amount is automatically transferred from the prepayment account to cover claims.
For a vehicle that is registered in the Estonian motor register for the first time during a taxable period (year), the tax must be paid:
- by 15 December if the vehicle is registered between 2 January and 30 September,
- by 15 June of the following year if the vehicle is registered between 1 October and 31 December.
- Estonian Tax and Customs Board
Motor vehicle tax rates
The amount of tax for each vehicle is individual. The tax on vehicles of different categories is based on different types of factors (for example, the tax on a vehicle of category M1 is formed on the basis of the base amount, CO2 component, and vehicle’s maximum mass).
The Tax and Customs Board calculates motor vehicle tax on the basis of the data in the motor register of the Transport Administration according to the tax rates specified in §§ 11–14 of the Motor Vehicle Tax Act.
More information from the web page of the Tax and Customs Board: Motor vehicle tax.