Motor Vehicle Tax

Starting January 1, 2025, Estonia implements a new motor vehicle tax applying to all vehicles registered in the Estonian Transport Administration. The tax consists of two key components: an annual tax and a registration fee.

Annual Tax

The annual tax applies to registered vehicles and is calculated based on:

• Vehicle category

• CO2 emissions (or engine power if CO2 data is unavailable)

• Gross weight

• Age (for cars and vans older than five years)

The tax is payable in two installments on June 15 and December 15, with tax notices issued by February 15 each year.

Registration Fee

A one-time fee is required for:

• First registration of a new vehicle

• First change of ownership

This fee is not applicable to leased vehicles or vehicles received through inheritance. It must be paid before registration or ownership change is finalized.

Affected Vehicles and Exemptions

The tax applies to passenger cars, vans, pickups, motorcycles, mopeds, off-road vehicles, and wheeled tractors. Exemptions include diplomatic mission vehicles, emergency vehicles, and NATO-owned vehicles.

Tax Rates

• Passenger cars: Base fee (€50) + weight-based component + CO2 emissions component

• Electric cars: Base fee (€50) + weight-based component

• Vans: Base fee (€50) + CO2 emissions component

• Electric vans: Flat annual tax of €30

• Motorcycles, mopeds, off-road vehicles, and wheeled tractors: €30 to €90, based on age and engine displacement

  
  

Business Implications

• The tax is deductible as a business expense

• Applies to company-owned vehicles

• For leased vehicles, the responsible user (not the owner) is liable for the tax

  
  

Policy Objectives

The new tax is designed to encourage the use of environmentally friendly vehicles while allowing older vehicles to remain in use until the end of their lifespan.

These changes will impact both individuals and businesses, making it essential to prepare in advance.

Official car tax calculator: See how much you'll have to pay.