Estonian car tax 2026: how the annual tax works
The motor vehicle tax has applied in Estonia since 2025 and still raises plenty of questions. Here is a plain explanation of what the annual tax consists of, who pays and when, and how to estimate the amount in advance.
Updated: 2026-07-08
What does the car tax consist of?
The annual tax for a passenger car has three parts that are added together.
- Base part: 50 € per year for every vehicle.
- CO2 part: a tiered rate for every gram of CO2 above 117 g/km. The higher the emissions, the more each further gram costs.
- Mass part: 0.40 € for every kilogram of gross weight above 2000 kg.
Who pays and when?
The liability lies with the vehicle owner in the traffic register or the responsible user. The Tax and Customs Board issues a notice in February; the tax can be paid in two instalments - the first half by 15 June and the second by 15 December.
The tax applies even if the car is not driven - the register entry is decisive. If a car sits unused for long, consider temporarily removing it from the register.
Annual tax vs registration fee
These two are often confused. The annual tax is paid every year for all registered cars. The registration fee is a one-off payment at first registration in Estonia or ownership change - several times larger and also based on CO2 and mass.
How to lower the tax?
The amount is baked into the car's specs, so the only real lever is car choice. Lower CO2 and a lighter car mean a lower tax. EVs have no CO2 part, but the mass component can still be notable due to the battery.
Before buying, run both the annual tax and the registration fee - the difference between two similar cars can be hundreds of euros a year.
Calculate your car's tax
Our car tax calculator computes the annual tax from CO2 emissions and mass. Enter the numbers from the registration certificate and see the amount instantly.