On July 29, 2024, the Estonian Parliament adopted the updated motor vehicle tax law, which was sent to the President of the Republic of Estonia for promulgation so that the law would enter into force on January 1, 2025.
The motor vehicle tax will consist of two parts - the annual tax, which will be collected by the Tax and Customs Board, and the registration fee, which will be collected by the Transport Administration. The motor vehicle tax will be paid into the state budget.
Annual tax shall be paid yearly by the motor vehicle owner for vehicles registered in the traffic register. The motor vehicle tax rate for passenger cars and vans will consist of the base part, the specific CO2 emissions part and the gross weight part, and for motorcycles, the engine capacity. The annual tax rate for passenger cars and vans also depends on the age of the vehicle. If the passenger car or van does not have CO2 data, the calculation is based on the formula provided by law, where the vehicle's power in kilowatts, the vehicle's unladen weight and age in years and, if necessary, the type of engine fuel are taken as a basis.
