Estonia launches a new motor vehicle tax from 1 January 2025, covering various vehicles with rates based on age, weight, and emissions.
The Estonian President approved amendments to the Motor Vehicle Tax Act and updates to the Traffic Act on 9 August 2025, introducing a new motor vehicle tax in Estonia effective 1 January 2025. The tax applies to a wide range of vehicles, including passenger cars, vans, motorcycles, mopeds, off-road vehicles, and wheeled tractors.
The tax consists of two components: an annual tax for light vehicles and a registration fee for passenger cars and vans. Tax amounts are determined by vehicle weight, CO2 emissions, and age. Incentives are included for electric vehicles and plug-in hybrids, and older cars so they can remain in use until the end of their lifespan.
The annual tax will be paid by vehicle owners or authorised users. For automobiles (M1) and vans (N1), the tax calculation mirrors the registration fee structure. Other vehicles are taxed based on parameters such as age and engine power, with older vehicles over ten years benefiting from reduced rates.
