The law amends the Motor Vehicle Tax Act to support large families.
Estonia gazetted amendments to the Motor Vehicle Tax Act on 12 November 2025, introducing new tax reductions for parents and guardians.
Under the changes, adults with custody of at least one child aged 18 or younger will receive an automatic reduction of up to EUR 100 per child per taxation period, capped at their total tax obligation. If a child has multiple parents who each own a vehicle, the reduction will be shared between them.
The amendments also change the taxation of larger passenger vehicles. M1-category minibuses with more than seven seats will now be taxed at the N1-category motor vehicle rate, significantly lowering the tax for eight-seater or larger vehicles. The same rule will apply to the vehicle registration fee.
The measure is designed to support large families.
