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Estonia's Land Tax Overhaul Adds 35,000 New Payers
Estonia's Tax and Customs Board has begun notifying approximately 370,300 landowners of their 2026 land tax obligations, which are projected to total 90.3 million euros, following reforms that grant local governments expanded authority to set tax rates.
- —Estonia's Tax and Customs Board (NТД) has begun notifying landowners about their 2026 land tax obligations, with the first payment installment due by March 31.
- —Approximately 370,300 taxpayers, including 334,600 individuals and 35,700 legal entities, are expected to pay a total of 90.3 million euros in land tax for 2026, with an estimated 34,900 landowners newly subject to the tax compared to 2025.
- —Changes for 2026 include expanded local government authority in setting land tax amounts, a fixed-sum housing land benefit of up to 1,000 euros, and a protective mechanism limiting annual tax increases to 10-100% per cadastral unit.
- —The NТД is advising taxpayers to access their tax notices exclusively through the official e-MTA portal (emta.ee/ru) to avoid phishing scams.
Recap
The 2026 land tax changes represent a significant decentralization of fiscal power in Estonia, handing municipalities greater control over revenue generation. While this allows for tailored local economic policy, it also introduces potential for tax burden disparities across the country. The inclusion of nearly 35,000 new taxpayers marks a broadening of the tax base, with the government deploying a capped increase mechanism to manage the political and economic fallout for property owners.