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Estonia Begins €84M Vehicle Tax Collection With Family Discounts
Estonia's Tax and Customs Board has started issuing payment notices to nearly half a million vehicle owners for the 2026 motor vehicle tax, aiming to collect approximately €83.8 million with the first installment due by June 15.
- —Estonia's Tax and Customs Board (MTA) has started sending out annual motor vehicle tax (annual tax) payment notifications to individuals and legal entities.
- —Approximately 496,000 taxpayers, comprising nearly 426,000 individuals and 70,000 legal entities, are expected to pay a total of approximately €83.8 million in motor vehicle tax for 2026.
- —The first installment of the annual tax is due by June 15, 2026, with the second installment due by December 15, 2026.
- —Tax notices automatically account for tax reductions for families with children, benefiting around 160,000 people and reducing their tax obligations by over €16.6 million.
- —A change in calculation for 8- and 9-seater M1 category vehicles, now based on N1 category rates from January 1, 2026, will result in lower tax amounts for these vehicles compared to the previous year.
Recap
The rollout of Estonia's motor vehicle tax notices marks a shift from policy debate to revenue collection, securing a significant €84 million for state finances. The system's design reveals a dual objective: maximizing revenue while mitigating the financial impact on families through over €16 million in automatic, targeted relief. This administrative phase demonstrates a clear strategy of embedding social policy directly into the tax collection mechanism.