Estonian car tax 2026: how the annual tax works

What does the car tax consist of?

The annual tax for a passenger car has three parts that are added together.

The mass part is capped: at most 400 € a year for a regular car. For an electric car the mass part only starts above 2400 kg and is capped at 440 €. Both inputs are on the registration certificate: CO2 emissions in grams per kilometre (the calculator assumes the WLTP figure) and gross mass in kilograms.

• 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.

CO2 tiers and what each gram costs

The CO2 part is tiered like a progressive income tax: each rate applies only to the grams inside its band. A car emitting up to 117 g/km pays nothing for CO2. Each gram from 118 to 150 g/km costs 3 €, from 151 to 200 g/km 3.5 €, and above 200 g/km 4 €.

So a car emitting 150 g/km has a CO2 part of (150 - 117) x 3 = 99 €. A 185 g/km car pays the same 99 € for the first band plus (185 - 150) x 3.5 = 122.50 €, 221.50 € in total. At 230 g/km a third band adds (230 - 200) x 4 = 120 €, bringing the CO2 part to 99 + 175 + 120 = 394 €.

The practical point: when comparing two similar models, not every gram costs the same. Choosing between a 185 g/km and a 200 g/km engine, the 15-gram gap costs 52.50 € a year. Between 120 g/km and 135 g/km the same 15 grams cost 45 €.

Five cars worked through

The examples below assume a new car or one under five years old, so the age coefficient is 1, with no children taken into account. The figures are illustrative; your own car's data is on its registration certificate.

• Small city car, 120 g/km and gross mass 1650 kg: base 50 € + CO2 9 € + mass 0 € = 59 € a year.
• Family car, 150 g/km and gross mass exactly 2000 kg: 50 € + 99 € + 0 € = 149 € a year. The mass part is zero because it only starts above 2000 kg.
• SUV, 185 g/km and gross mass 2350 kg: 50 € + 221.50 € + mass part (350 x 0.40) 140 € = 411.50 € a year.
• Large SUV, 230 g/km and gross mass 2600 kg: 50 € + 394 € + 240 € = 684 € a year.
• Very heavy car, 260 g/km and gross mass 3200 kg: the mass part would be 480 € but is capped at 400 €, so 50 € + 514 € + 400 € = 964 € a year.

Electric cars: no CO2 part, but mass still counts

An electric car's CO2 part is zero. The mass part is still 0.40 € per kilogram, but only above 2400 kg and capped at 440 € a year. An electric car with gross mass up to 2400 kg therefore pays just the base part.

Because of the battery, an electric car's gross mass is often higher than that of a petrol car of the same size. That is why the EV mass threshold is higher, yet a heavy electric SUV can still carry a noticeable tax.

• Electric car with gross mass 2250 kg: 50 € a year. A combustion car of the same mass would pay 100 € for mass on top of its CO2 part.
• Electric car with gross mass 2850 kg: 50 € + (450 x 0.40) 180 € = 230 € a year.
• Electric car with gross mass 3600 kg: the mass part hits the 440 € cap, 490 € a year in total.

Age coefficient and the family discount

From the fifth year after first registration, the CO2 and mass parts are multiplied by an age coefficient. The 50 € base always stays. The coefficient is 0.92 at 5 years, 0.67 at 8, 0.51 at 10, 0.35 at 12 and 0.10 at 15-19 years. For a car at least 20 years old the CO2 and mass parts are zero and only the base is payable.

From 2026 the annual tax falls by up to 100 € for each child under 18. The discount is applied automatically and cannot exceed the tax itself. If both parents own a car, the discount is split between them.

• SUV at 185 g/km and 2350 kg, 8 years old: 50 € + (221.50 € + 140 €) x 0.67 = 292.21 € a year.
• Large SUV at 230 g/km and 2600 kg, 12 years old: 50 € + (394 € + 240 €) x 0.35 = 271.90 € a year.
• The same large SUV at 20 years old: just the 50 € base a year.
• A new SUV taxed at 411.50 € with two children under 18: 411.50 € - 200 € = 211.50 € a year.
• A city car taxed at 59 € with one child: the discount is 59 €, not 100 €, and nothing is payable.

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.

For a 411.50 € annual tax, paying in two halves means 205.75 € by June and 205.75 € by December. On a tight budget it is worth setting that aside in spring rather than waiting for the deadline.

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.

The annual tax is paid to the Tax and Customs Board, while the registration fee is collected by the Transport Administration. Our car tax calculator covers the annual tax only; the registration fee has to be checked separately.

Common mistakes when estimating car tax

Most wrong expectations come from typing the wrong number into the calculator or forgetting one of the rules.

• Entering kerb weight instead of gross mass. The mass part uses gross mass, which is always higher.
• Assuming every gram of CO2 costs the same. Grams get more expensive past the 150 and 200 g/km thresholds.
• Applying the age coefficient to the whole amount. It reduces only the CO2 and mass parts; the 50 € base remains.
• Believing electric cars are exempt. The base always applies, and a heavy EV pays the mass part too.
• Counting the full child discount when the car's tax is below 100 €.
• Mixing up the annual tax and the registration fee when working out the cost of a purchase.

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.

For a used car, age matters too. A 12-year-old large SUV (271.90 €) can be cheaper in annual tax than a new 185 g/km SUV (411.50 €), even though the newer car is cleaner. When comparing running costs, include fuel consumption as well, which also depends on the engine and the mass.

• Before buying, get the exact WLTP CO2 figure and gross mass from the registration certificate or the seller.
• Check whether emissions sit just above a tier threshold (150 or 200 g/km).
• Check whether gross mass exceeds 2000 kg (2400 kg for an electric car), and by how much.
• Factor in the car's age, since the age coefficient changes every year.
• Add fuel costs and any leasing payment to the annual tax to see the car's real monthly cost.

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.

The fuel cost calculator shows what everyday driving costs, and the leasing calculator helps estimate the monthly payment if the car is bought on finance.