Estonian Parliament adopted on 29 July 2024 an amended draft law on motor vehicle tax, according to which from 2025 will be imposed a motor vehicle tax on passenger cars and vans or other motor vehicles with the weight of up to 3 500 kg.
The new tax will include two components – the registration fee, which is payable upon the registration of M1, M1G, N1 and N1G category vehicles in the traffic register, and annual tax on vehicles registered in the traffic register, which is applicable to following vehicles:
- Passenger cars – M1 and M1G category;
- Vans, wagons and pickup trucks – N1 and N1G category;
- Motorbikes – L3e, L4e, L5e, L6e and L7e category;
- Off-road vehicles – MS2 category;
- Wheeled tractors – T1b, T3 and T5 category.
The rate of the motor vehicle tax includes the following components – base rate, CO2 specific emission and full weight. The rate of fully electric vehicle includes the base rate and the full weight.
The registration fee is payable upon the first registration of the vehicle in the traffic register, as well as upon the first change of ownership, unless the registration fee has been paid earlier on that motor vehicle. The amount of average registration fee will remain below 10% of the approximate value of that motor vehicle. However, the registration fees will be increased from 2028 and 2031.
The registration fee will not be due upon the purchase of the motor vehicle from the leasing company (when the responsible user becomes the owner of that vehicle) and registration of the vehicle to the purchaser, as well as upon the registration of the inherited vehicle. In such a case, the registration fee is applied upon the following sales transaction with that vehicle. For up to 10 years-old vehicles, which are transferred out from the country, the refund of registration fee can be applied, if the respective amount is at least 300 euros.
The age of the vehicle will reduce the amount of both registration fee and annual tax on vehicles. This applies both to passenger cars and vans or other vehicles, regardless whether these are owned by individuals or companies.
The exemption from registration fee and annual tax on vehicles applies to emergency vehicles and to vehicles owned by foreign representations according to international agreements. The annual tax on vehicles will be collected by the Tax and Customs Board and the registration fee by the Transport Administration.
It is recommended to check the data of vehicles registered in the traffic register of the Transport Administration prior to 1 January 2025, in order to ensure that this data to be used for the calculation of tax is correct: https://eteenindus.mnt.ee/public/soidukTaustakontroll.jsf?lang=en
The Tax and Customs Board will issue the tax notice in respect of the annual tax on vehicles by 15 February. Generally, the annual tax should be paid in two parts: half of the amount due by 15 June and the other half by 15 December of that year, at the latest. Persons, which purchase the vehicle during the current year, should pay the annual tax on vehicle on pro rata basis (according to days remaining in that year):
- For the vehicle purchased and entered to the traffic register between the period from 1 January until 30 September – by the 15 December of that year;
- For the vehicle purchased and entered to the traffic register between the period from 1 October until 31 December – by the 15 June of the following year.
For the determination of the amounts of motor vehicle tax, please use the calculator published at the websites of the Tax and Customs Board and the Transport Administration:
https://avalik.emta.ee/mootorsoidukimaks/calc
https://eteenindus.mnt.ee/public/automaksuKalkulaator.jsf?lang=en
Additional information on the motor vehicle tax will be published on the websites of the Tax and Customs Board and the Transport Administration (currently in Estonian only):
https://www.emta.ee/ariklient/maksud-ja-tasumine/muud-maksud-ja-nouded/mootorsoidukimaks
https://www.transpordiamet.ee/soidukid-ja-maanteeliiklus/soidukid/mootorsoidukimaks