New motor vehicle tax and registration fee system in Estonia in 2025

As of 1 January 2025, a new law came into force in Estonia, introducing a two-part tax system for vehicles: a one-time registration fee and an annual vehicle tax. eCarsTrade+3Transpordiamet+3emta.ee+3 This change may significantly affect vehicle purchases, use, and owners’ costs. Below, I explain how these taxes are calculated and who they apply to, with examples.

Who pays and what the system applies to

Vehicle categories

The tax and registration fee apply mainly to vehicles in the following categories:

• Internal combustion engine vehicles (M1 category) – the so-called more common passenger cars. Transpordiamet+1

• Van/truck vehicles (N1 category, brutomass kuni 3,5 t). Transpordiamet+1

• Other categories (e.g. motorcycles, special-purpose trucks) – subject to the annual tax, but the registration fee may apply primarily to M1/N1. Transpordiamet+1

Why this change?

Estonia previously had no general annual vehicle tax – the new system focuses on environmental awareness (CO₂ emissions, mass) and vehicle age and contributes to the implementation of a greener transport policy. Riigikogu+2ey.com+2

When is it paid?

• The one-time registration fee must be paid before a vehicle is first registered in Estonia or before the first change of ownership in the Estonian register if the fee has not previously been paid. Transpordiamet+1

• The annual motor vehicle tax must be paid each year by the owner or user while the vehicle is registered in the motor vehicle register. emta.ee+1

Calculation of the registration fee (one-time)

Below, I explain step by step how the registration fee is calculated (using M1 category passenger cars as an example).

Main components

The registration fee consists of three main components: a base fee, a CO₂ emissions component, and a mass component. Eesti Kaubandus-Tööstuskoda+2Transpordiamet+2

• Base fee: for example, ~ 150 € for passenger cars. Eesti Kaubandus-Tööstuskoda

• CO₂ emissions component: the higher the emissions (g CO₂/km, WLTP or converted NEDC), the greater the share of the cost. eCarsTrade+1

• Mass component: the vehicle's gross weight exceeds the established threshold – in that case, a fee is added. Eesti Kaubandus-Tööstuskoda+1

Impact of vehicle age

For older vehicles, an age coefficient applies, reducing the fee for the CO₂ and mass components. The base fee remains unchanged. Transpordiamet+1

Example total

Suppose you purchase an M1-category passenger car with CO₂ emissions of, for example, 140 g/km (WLTP) and a gross weight of 2 300 kg. For example:

• Base fee = 150 €

• CO₂ component = for example, (140 g – threshold) × €/g (applicable rate) → assume here for simplicity: 140 g × 10 €/g = 1 400 € (example)

• Mass component = gross vehicle weight (2 300 kg) minus weight threshold (2 000 kg) = 300 kg × 2 €/kg = 600 € (example)

• Age multiplier: if the vehicle is, for example, 10 years old, then the CO₂+mass osale kehtida 0,60 multiplier may be used (example) → (1 400 € + 600 €) × 0,60 = 1 200 €

• Total registration fee = 150 € + 1 200 € = 1 350 €

(This is an illustrative example – actual rates depend on the law and vary for different emission levels and vehicle masses.)

Why can the fee be significant?

If the vehicle is large, heavy and has high CO₂ emissions, the registration fee may amount to thousands of euros. This significantly affects the cost of purchasing a car. eCarsTrade

Calculating the annual motor vehicle tax

In addition to the registration fee, an annual motor vehicle tax must be paid in subsequent years.

Main components

The vehicle tax also consists of several components:

• Base fee (e.g. ~ 50 € for passenger cars). Eesti Kaubandus-Tööstuskoda+1

• CO₂ emissions component – the vehicle’s CO₂ emissions in g/km; if WLTP data is unavailable, the substitute formula stipulated by law is used (power, weight, age, fuel type). Transpordiamet+1

• Mass component – if the gross weight exceeds the established limit. eCarsTrade+1

• Age coefficient – for older vehicles, the CO₂ + mass portion decreases, while only the base fee remains. Eesti Kaubandus-Tööstuskoda+1

Payment schedule and terms

• If the vehicle is registered on 1 January, a tax notice will be sent by 15 February at the latest. emta.ee+1

• Payment is made in two instalments: the first instalment no later than 15 June and the second on 15 December. emta.ee+1

• If the vehicle is registered during the year, the amount is paid proportionally to the number of days remaining until the end of the year. emta.ee

Example of the annual tax

Let us take the same car as in the previous example (CO₂ = 140 g/km, gross weight 2 300 kg, 10 years old). Let us assume the following simplified figures:

• Base tax = 50 €

• CO₂ component = 140 g × 10 €/g = 1 400 €

• Mass component = (2 300 kg – 2 000kg) × 2 €/kg = 600 €

• Age multiplier (e.g. 0,60) → (1 400 + 600) × 0,60 = 1 200 €

• Total annual tax = 50 € + 1 200 € = 1 250 €

The exact rates may vary according to the law and the vehicle's technical specifications.

Tips and practical advice for car buyers

Before purchasing

• Check the vehicle's technical data in the Transpordiamet register – CO₂ emissions, gross weight and other data. If the data is missing or incorrect, the tax rate may be significantly higher. emta.ee+1

• Use the official calculator of Maksu- ja Tolliamet or the calculator in Transpordiamet's e-service to simulate the tax amount for your vehicle. ERR+1

• If the vehicle has no CO₂ data or only NEDC emissions data, a conversion factor will be applied, which may increase the tax. eCarsTrade+1

When purchasing a car

• Choose a vehicle with the lowest possible CO₂ emissions – this will help reduce both the registration fee and the annual tax.

• Consider the vehicle's gross weight – lighter vehicles result in a lower weight component of the tax.

• Effect of age – older vehicles are taxed less due to the age coefficient, but if the vehicle is very old, its condition and use must certainly be taken into account.

• For sale or exchange: be aware that if the vehicle's owner changes and the registration fee has not been paid before, a new fee will apply. This may make transactions involving the purchase/sale of used vehicles more expensive. ERR

If the vehicle is taken out of Estonia

If a vehicle is exported from Estonia (with a departing registration) and meets certain conditions (e.g. the vehicle is up to 10 years old), a refund of the registration fee may be requested. Eesti Kaubandus-Tööstuskoda

Exceptions

• Avoid the fee if the car comes from a leasing company and is transferred directly to the user – the registration fee will only apply upon the next change of ownership. Transpordiamet

• Diplomatic vehicles and rescue and defence vehicles may be exempt from tax. emta.ee

Frequently Asked Questions (FAQ)

Can the exact tax amount be known in advance?
Yes — the websites of Transpordiamet and Maksu- ja Tolliamet have calculators that allow you to enter the vehicle's registration number or technical data and obtain an estimated amount. ERR+1 However, it should be noted that the actual cost may differ depending on technical data that have not yet been confirmed.

Can the tax amounts be reduced or avoided?
This is a mandatory statutory tax on vehicles above certain categories. The options for reducing it involve optimizing the vehicle's technical specifications (CO₂, mass) and the age multiplier applicable to older vehicles. The most important thing is to choose a more environmentally friendly and lighter vehicle.

Will the tax increase in the future?
Yes — according to the law, registration fee rates are scheduled to increase in 2028 and 2031. Eesti Kaubandus-Tööstuskoda+1

Does this new system also apply to older vehicles?
Yes — the annual tax component applies to vehicles registered as of 1.1.2025. Vehicles whose registration is suspended until 31.12.2026 may be exempt from the tax. Transpordiamet

Summary

The new vehicle tax and registration fee system in Estonia from 2025 imposes an additional burden on vehicle owners — both when purchasing a passenger car and during its annual use. The system takes into account environmental impact (CO₂), vehicle mass, and age, and is clearly aimed at greener transport.

As a car buyer, it is very important to carefully analyse the vehicle's technical data, use official calculators and forecast your tax burden. Choosing the technical specifications (such as emissions and weight) helps determine the registration fee and annual tax.