Motor Vehicle Tax Act

This Act lays down a motor vehicle tax, which is levied on a motor vehicle according to its characteristics.

(1) For the purposes of this Act, a motor vehicle is the following vehicle registered in the motor register

1) a motorcycle (hereinafter referred to as a motor vehicle of categories L3e, L4e and L5e);

2) a four-wheeled moped (hereinafter referred to as a motor vehicle of category L6e);

3) a four-wheeled motor vehicle with an unladen mass not exceeding 450 kilograms in the case of a vehicle intended for the carriage of passengers or 600 kilograms in the case of a vehicle intended for the carriage of goods and which are not mopeds, tractors or mobile machinery (hereinafter referred to as a motor vehicle of category L7e);

4) a wheeled off-road vehicle (hereinafter referred to as a motor vehicle category MS2);

5) a wheeled tractor, the design speed of which exceeds 40 kilometres per hour and the minimum track on the axle nearest to the driver is at least 1,150 millimetres, the unladen mass of which, in running order, exceeds 600 kilograms and the clearance of which does not exceed 1,000 millimetres, and which is not a special purpose wheeled tractor; in the case of a tractor with a reversible driving position, the axle nearest to the driver is that on which the tyres with the largest diameter are mounted (the aforementioned wheeled tractor is hereinafter referred to as a motor vehicle of category T1b);

6) a wheeled tractor with an unladen mass, in running order, not exceeding 600 kilograms and which is not a special purpose wheeled tractor (hereinafter referred to as a motor vehicle of category T3);

7) a wheeled tractor with a design speed exceeding 40 kilometres per hour which is not a special purpose wheeled tractor (hereinafter referred to as a motor vehicle of T5 category);

8) a passenger car (hereinafter referred to as a motor vehicle of category M1);

9) a truck with a gross vehicle weight not exceeding 3,500 kilograms (hereinafter referred to as a motor vehicle of category N1).

(2) The categories of vehicles referred to in clauses 1–3, 6, 8 ja 9 of subsection 1 of this section also include their subcategories.

The object of a motor vehicle taxation is

1) a motor vehicle registered in the motor register;

2) a motor vehicle which has been temporarily deleted or suspended from the motor register.

Motor vehicle tax is paid into the state budget.

Motor vehicle tax is to be paid by

1) the owner of the motor vehicle; or

2) the authorised user within the meaning of clause 93 of § 2 of the Road Traffic Act, if there is an authorised user, if the owner of the vehicle is a lessor, a non-resident natural person or a legal person not registered in Estonia.

(1) The person liable to pay motor vehicle tax is a person who

1) is the owner of the vehicle or the authorised user specified in clause 2 of § 5 of this Act as of 1 January of the period of taxation, according to the data in the motor register; or

2) has been entered in the Estonian motor register for the first time during the period of taxation as the owner of the motor vehicle or as authorised user specified in clause 2 of § 5 of this Act.

(2) If, at the time referred to in subsection 1 of this section, according to the motor register, the vehicle has an authorised user referred to in clause 2 of § 5 of this Act, then the aforementioned user will be liable to pay the tax.

(1) The period of taxation for motor vehicle tax is one calendar year.

(2) Upon registration of a motor vehicle for a specified term, the motor vehicle tax must be paid for the period of registration for a specified term.

(3) If a motor vehicle is first registered in the motor register during a period of taxation, the motor vehicle tax will be calculated pursuant to the procedure provided for in § 8 of this Act.

(4) Motor vehicle tax will be paid in the amount of 50 per cent by 15 June and 50 per cent by 15 December.

(1) Motor vehicle tax will be payable by 15 December for motor vehicles first registered in the motor register during the period of taxation until 30 September.

(2) Motor vehicle tax will be payable by 15 June of the following year on motor vehicles first registered in the motor register after 30 September during the period of taxation.

(3) Motor vehicle tax will be calculated in proportion to the number of days remaining until the end of the current period of taxation, starting from the day following the day of registration.

(1) On the basis of the information received from the motor register, the Estonian Tax and Customs Board will issue a tax notice to the taxpayer concerning the amount of motor vehicle tax payable not later than on 15 February.

(2) A tax notice concerning a tax liability for a motor vehicle registered for the first time in the motor register during a period of taxation must be issued within 15 working days after making the register entry.

(3) The minister in charge of the policy sector may, by authorisation of the Government of the Republic, enter into a contract with a legal person in private law on performance of duties related to delivery of tax notices pursuant to the Administrative Co-operation Act.

In the event of transfer of a motor vehicle or transfer of the right of use of a motor vehicle during a period of taxation, the motor vehicle tax paid for the period of taxation will not be refunded and the amount of tax will not be reduced.

(1) The motor vehicle tax for motor vehicles of categories L3e, L4e, L5e, L6e and L7e, motor vehicles of category MS2 with an unladen mass not exceeding 1,000 kilograms, motor vehicles of category T3 and motor vehicles of categories T1b and T5 with an unladen mass not exceeding 1,000 kilograms, for which no more than ten years have elapsed from the date of first registration up to the date of the beginning of the period of taxation, will be

1) 30 euros if the engine capacity of the motor vehicle is 51–125 cubic centimetres;

2) 45 euros if the engine capacity of the motor vehicle is 126–500 cubic centimetres;

3) 60 euros if the engine capacity of the motor vehicle is 501–1,000 cubic centimetres;

4) 75 euros if the engine capacity of the motor vehicle is 1,001–1,500 cubic centimetres;

5) 90 euros if the engine capacity of the motor vehicle exceeds 1,500 cubic centimetres.

(2) The motor vehicle tax for motor vehicles of categories L3e, L4e, L5e, L6e and L7e, motor vehicles of category MS2 with an unladen mass not exceeding 1000 kilograms, motor vehicles of category T3 and motor vehicles of categories T1b and T5 with an unladen mass not exceeding 1,000 kilograms, the date of first registration of which is more than 10 years but not more than 20 years after the date of the beginning of the period of taxation, will be

1) 30 euros if the engine capacity of the motor vehicle is 126–500 cubic centimetres;

2) 45 euros if the engine capacity of the motor vehicle is 501–1,000 cubic centimetres;

3) 60 euros if the engine capacity of the motor vehicle is 1,001–1,500 cubic centimetres;

4) 75 euros if the engine capacity of the motor vehicle exceeds 1,500 cubic centimetres.

(1) The tax rate of a motor vehicle of category M1, which is not fully electric within the meaning of clause 881 of § 2 of the Road Traffic Act and for which data on specific emissions of carbon dioxide (hereinafter referred to as CO2 ) calculated in accordance with the harmonised worldwide light vehicle test procedure (hereinafter referred to as the WLTP procedure) are available in the motor register, will be calculated as the sum of the following three components

1) a base amount of EUR 50 per motor vehicle;

2) the share of the specific emissions of CO2, in such a way that each gram of CO2 between 118 and 150 grams per kilometre is multiplied by 3 euros, between 151 and 200 grams per kilometre is multiplied by 3.5 euros and between 201 and more grams per kilometre is multiplied by 4 euros;

3) the mass fraction in such a way that each kilogram exceeding the 2,000 kilograms maximum mass of a motor vehicle is multiplied by 0.40 euros up to the amount of 400 euros or, in the case of an externally chargeable motor vehicle and marked as ‘OVC-HEV’ in the motor register, in such a way that each kilogram exceeding the 2,200 kilograms maximum mass of a motor vehicle is multiplied by 0.40 euros up to the amount of 400 euros.

(2) The tax rate for a motor vehicle referred to in subsection 1 of this section, for which data are available in the motor register only on the specific emissions of CO2 calculated according to the New European Driving Cycle (hereinafter referred to as the NEDC method), will be calculated as the sum of the following three components

1) the base amount referred to in subsection 1 of this section;

2) the mass fraction referred to in subsection 1 of this section;

3) the share of the specific emissions of CO2, in such a way that first the indicator of the specific emissions of CO2 is multiplied by the coefficient 1.21 and then each gram of CO2 is multiplied by the factor according to the provisions of clause 2 of subsection 1 of this section.

(3) The reference value of the WLTP procedure for the specific emissions of CO2 of a motor vehicle specified in subsection 1 of this section for which no data on the specific emissions of CO2 are available in the motor register is calculated as the sum of the following three components, rounded to an integer

1) the power of the internal combustion engine in kilowatts is multiplied by 0.29;

2) the unladen mass of the motor vehicle in kilograms is multiplied by 0.07;

3) the age of the motor vehicle in years as at the date of commencement of the period of taxation as of the date of initial registration is be multiplied by 4.92.

(4) The following will be deducted from the sum obtained by adding the amounts prescribed in clauses 1–3 of subsection 3 of this section

1) 35 CO2 grams per kilometre in the case of a diesel engine vehicle;

2) 52 CO2 grams per kilometre in the case of a not externally chargeable motor vehicle with a diesel engine and marked as ‘NOVC-HEV’ in the motor register;

3) 39 CO2 grams per kilometre in the case of a not externally chargeable motor vehicle with petrol engine, marked as ‘NOVC-HEV’ in the motor register.

(5) The maximum reference value of the WLTP procedure for specific emissions of CO2 specified in subsection 3 of this section is 350 CO2 grams per kilometre.

(6) The tax rate of a motor vehicle specified in subsections 3 and 4 of this section will be calculated as the sum of the following three components

1) the base amount referred to in subsection 1 of this section;

2) the mass fraction referred to in subsection 1 of this section;

3) The share of the specific emissions of CO2, calculated using the reference value of the WLTP procedure.

(7) The tax rate for a motor vehicle referred to in subsection 3 of this section, which is marked as ‘OVC-HEV’ in the motor register, will be calculated as the sum of the following two components

1) the base amount referred to in subsection 1 of this section;

2) the mass fraction referred to in subsection 1 of this section.

(8) The tax rate for a motor vehicle referred to in subsection 1 of this section, which is fully electric, will be calculated as the sum of the following two components

1) a base amount of EUR 50 per motor vehicle;

2) the mass fraction, in such a way that each kilogram exceeding the total weight of the motor vehicle of 2,400 kilograms is multiplied by 0.40 euros up to the amount of 440 euros.

(9) A motor vehicle of category M1 with body name ‘motor caravan’, according to the motor register, will be taxed at the rate for a motor vehicle of category N1.

(1) The tax rate for a motor vehicle of category N1, which is not fully electric and for which the specific emissions of CO2 calculated according to the WLTP procedure are available in the motor register, will be calculated as the sum of the following two components

1) a base amount of EUR 50 per motor vehicle;

2) the share of the specific emissions of CO2, in such a way that each gram of 2 between 205 and 250 grams per kilometre is multiplied by 3 euros, between 251 and 300 grams per kilometre is multiplied by 3.5 euros and between 301 and more grams per kilometre is multiplied by 4 euros.

(2) The tax rate of a motor vehicle specified in subsection 1 of this section for which only the specific emissions of CO2 calculated using the NEDC method are available in the motor register will be calculated as the sum of the following two components

1) the base amount referred to in subsection 1 of this section;

2) the share of the specific emissions of CO2, in such a way that first the indicator of the specific emissions of CO2 is multiplied by the coefficient 1.3 and then each gram of CO2 is multiplied by the factor according to the provisions of clause 2 of subsection 1 of this section.

(3) The reference value of the WLTP procedure for the specific emissions of CO2 of a motor vehicle specified in subsection 1 of this section for which no data on the specific emissions of CO2 are available in the motor register is calculated as the sum of the following three components, rounded to an integer

1) the power of the internal combustion engine in kilowatts is multiplied by 0.4;

2) the unladen mass of the motor vehicle in kilograms is multiplied by 0.07;

3) the age of the motor vehicle in years as at the date of commencement of the period of taxation as of the date of initial registration is be multiplied by 5.16.

(4) In the case of a vehicle with petrol engine, 22 grams of CO2 per kilometre will be added to the sum of the amounts provided for in clauses 1–3 of subsection 3 of this section.

(5) From the sum of the amounts prescribed in clauses 1–3 of subsection 3 of this section, 20 CO2 grams per kilometre will be deducted from the sum obtained in the case of a not externally chargeable motor vehicle with petrol engine and marked as ‘NOVC-HEV’ in the motor register.

(6) The maximum reference value of the WLTP procedure for specific emissions of CO2 specified in subsection 3 of this section is 350 CO2 grams per kilometre.

(7) The tax rate of a motor vehicle specified in subsections 3–5 of this section will be calculated as the sum of the following three components

1) the base amount referred to in subsection 1 of this section;

2) The share of the specific emissions of CO2, calculated using the reference value of the WLTP procedure.

(8) The tax rate for a motor vehicle referred to in subsection 3 of this section, which is marked as ‘OVC-HEV’ in the motor register, will be the base amount specified in subsection 1 of this section.

(9) The tax rate of a motor vehicle specified in subsection 1 of this section which is fully electric is 30 euros per motor vehicle.

(10) A motor vehicle of category N1 the specific power of which, according to the data in the motor register, exceeds 0.20 kilowatts per kilogram of payload will be subject to the tax rate applicable to motor vehicles of category M1.

(1) The tax rate for motor vehicles of category M1 and category N1 will be multiplied by a coefficient dependent on the age of the motor vehicle, which is

1) 0.92 if at least 5 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

2) 0.84 if at least 6 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

3) 0.75 if at least 7 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

4) 0.67 if at least 8 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

5) 0.59 if at least 9 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

6) 0.51 if at least 10 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

7) 0.43 if at least 11 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

8) 0.35 if at least 12 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

9) 0.26 if at least 13 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

10) 0.18 if at least 14 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

11) 0.1 if at least 15 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation;

12) 0 if at least 20 years have passed from the date of initial registration of the motor vehicle by the date of commencement of the period of taxation.

(2) The coefficient of the rate of motor vehicle tax will be applied to the amount of motor vehicle tax less the base amount.

Motor vehicle tax is not imposed on

1) a motor vehicle registered as an emergency vehicle in the motor register;

2) motor vehicles belonging to a diplomatic representation and consular post of a foreign country, a special mission, a representation or headquarters of an international organisation recognised by the Ministry of Foreign Affairs, an institution of the European Union or an agency or institution established under the law of the European Union, a diplomatic representative of a foreign country and a consular officer accredited to Estonia, except for an honorary consul, a representative of a special mission and an international organisation, and an administrative staff of a diplomatic mission, consular post and special mission;

3) upon application of the tax incentive provided for in an international agreement to the North Atlantic Treaty Organisation (hereinafter NATO) and its sub-organisations, military headquarters, members of the international military headquarters and their dependants participating in the common defence activities and the armed forces and the civilian staff accompanying them and members of the armed forces and civilian staff of a Member State of the European Union participating in the implementation of the measures of the common security and defence policy, and their dependants, employees of the contractual partner of the foreign armed forces, members of the international military headquarters and their dependants and employees of the contractual partner of the headquarters and their dependants, and motor vehicles belonging to the armed forces and civilian staff of a foreign country which is not a Member State of the European Union or a Member State of NATO and an international military educational institution.

(1) The motor vehicle tax register is a sub-register of the register of taxable persons established on the basis of subsection 1 of § 17 of the Taxation Act, the procedure for the maintenance of which will be provided for in the statute of the register of taxable persons.

(2) The purpose of the motor vehicle tax register is to process information necessary for the administration of motor vehicle tax.

(3) The Transport Administration undertakes to submit to the Estonian Tax and Customs Board the basic data necessary for the calculation of the motor vehicle tax for the purpose of calculating the rates and exemptions provided for in §§ 11–15 of this Act, including

1) general data of the owner and the authorised user of the motor vehicle;

2) data for the identification of the motor vehicle;

3) technical data of the motor vehicle.

(1) If a motor vehicle is first registered in the motor register in the period of 1–31 January 2025, a tax notice concerning a tax liability arising for a motor vehicle must be issued not later than on 15 February 2025.

(2) A tax notice made available electronically in 2025 will also be delivered by post if

1) the taxpayer so requests, unless the tax notice has already been delivered to the taxpayer;

2) the tax notice has not been opened in the e-services environment of the Estonian Tax and Customs Board within 55 working days as of making it available.

By 2030 at the latest, the Ministry of Finance will analyse the achievement of the objective of the application of motor vehicle tax and registration fee provided for in Chapter 123 of the Road Traffic Act, the related impact and the effectiveness of the regulation.

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[The provisions amending other Acts omitted from translation.]

(1) This Act enters into force on 1 January 2025.

(2) Clauses 1–10 of § 22 of this Act enter into force on 1 June 2025.

(3) Clauses 1–4, 8, 11 and 12 of § 24 of this Act enter into force on 1 September 2025.

(4) Clause 12 of § 22 of this Act enters into force on 1 January 2026.

(5) Clause 2 of § 3 of this Act enters into force on 1 January 2027.

(6) Clauses 7, 9, 11 and 13 of § 20 of this Act enter into force on 1 January 2028.

(7) Clauses 8, 10, 12 and 14 of § 20 of this Act enter into force on 1 January 2031.