Author: Vladislav MoisejevUpdated Short answer: The car tax comes in two payments. The registration charge is paid once, when a car is first registered or transferred to a new owner: for an ordinary used car it runs 240–330 euros. The annual tax is paid by every owner in two parts, by 15 June and by 15 December: for a typical car it comes to 50–150 euros a year. Cars over 20 years old are not charged the annual tax at all.
The car tax has been in force since 1 January 2025, and in that time it has collected more rumours than clarity. The most common one: “now you will pay thousands for an old car.” You will not. Thousands are what new large SUVs run up; a ten-year-old saloon lands somewhere else entirely, and the figures below show exactly where.
What the tax consists of
You pay twice, and two different authorities collect the money.
The registration charge is paid once: when a car is first registered in Estonia, or when it is transferred to a new owner. Transpordiamet collects it, and until it is paid nothing goes into the register.
The annual tax is paid by whoever is the owner or responsible user on 1 January. The Tax and Customs Board calculates it, and the notice appears in e-MTA by 15 February at the latest. It is paid in two parts: half by 15 June, the rest by 15 December.
How the annual tax is worked out
For a passenger car (category M1) three parts are calculated: a base of 50 euros, CO₂ emissions and mass. Vans (N1) are not charged for mass, leaving the base and CO₂.
Emissions are not counted in full, only the share above the exempt threshold, and from there in steps:
- up to 117 g/km: exempt;
- 118–150 g/km: 3 euros per gram;
- 151–200 g/km: 3.5 euros per gram;
- from 201 g/km: 4 euros per gram.
Mass is not counted in full either: what is taken is the weight above a set threshold, electric cars get a higher threshold, and this part runs into a ceiling of its own. The simplest way to find the exact figure for your car is the Tax and Customs Board calculator, which works from the register data.
Age brings the tax down
After the fifth year an age coefficient kicks in. It multiplies the amount left once the base has been deducted, so the 50 euros are paid regardless.
- up to 5 years: 1.00
- 6 years: 0.84
- 7 years: 0.75
- 8 years: 0.67
- 9 years: 0.59
- 10 years: 0.51
- 11 years: 0.43
- 12 years: 0.35
- 13 years: 0.26
- 14 years: 0.18
- 15–19 years: 0.10
- 20 years and older: no tax
A worked example
Take a 2016 car, emissions of 140 g/km under WLTP, gross weight 1800 kg. In 2026 it is ten years old.
The CO₂ part: subtract the exempt 117 from 140, which leaves 23 grams at three euros each, so 69 euros. There is no mass part, as 1800 kg stays below the threshold. The age coefficient for a ten-year-old car is 0.51, so 69 euros becomes 35.19. Add the 50-euro base.
That comes to roughly 85 euros a year, or about 43 euros per instalment. If the calculated amount falls below 10 euros, no notice is issued at all.
What an ownership change costs
The figures here are higher, because the registration charge weighs emissions far more heavily: that is how the state steers people towards cleaner cars. This is what the Transpordiamet calculator returns as of October 2026:
- 2016 saloon, 140 g/km, 1800 kg: 329.30 euros;
- 2006 car, 180 g/km, 1900 kg: 240.75 euros;
- new 2026 SUV, 300 g/km, 3200 kg: 9,565 euros.
It is that spread that frightens people. In practice almost the whole used car market lives in the first two lines, and the thousands pile up on new heavy cars with high emissions.
What changed in 2026
Minibuses with eight and nine seats are now charged at the category N rate. The difference is substantial. The same 2021 car, emitting 183 g/km and weighing 2790 kg, comes to a registration charge of 1,822.80 euros with five seats, but 475.68 euros with eight. Nothing is recalculated retroactively.
Transpordiamet has started cleaning up the register. From January, cars belonging to deceased owners and dissolved companies are deleted automatically: temporarily once a year has passed since the death, or a month since the company was struck off, and permanently after seven years. Such a car may not be driven until it has been transferred to a new owner. Heirs pay no registration charge on the transfer, only the 71-euro state fee.
From 2027 the tax will also apply to cars whose registration has been suspended.
What reduces the tax
A parent’s bill is reduced by up to 100 euros for each child up to and including the age of 18. For that you need full custody of at least one child and at least one category M1 or N1 car owned or held as responsible user. Motorcycles and ATVs do not qualify.
Taking a car out of Estonia is a separate matter. If a car is deleted from the register in order to be used abroad, the last owner can recover part of the registration charge. The application goes in within 60 days of deletion, amounts below 300 euros are not refunded, and missing the deadline settles it.
What this means when you sell
One thing is worth remembering: the annual tax falls on whoever is the registered owner on 1 January. Sold the car but nothing changed in the register? You are the one who pays. The same goes for the new owner’s fines.
That is why ownership is transferred on the day of the deal, not “in the next few days”. When you sell to us, we take on the paperwork and the costs that come with it, the car goes into our name straight away, and nothing trails after you. A car over 20 years old carries no annual tax anyway, though the registration charge on the ownership change still applies.
If you want to know what your car is worth right now, write to us. We will value it and give you a figure the same day. More on the car buying page.
Frequently asked questions
When is the annual tax due?
In two parts: half by 15 June and the rest by 15 December. The notice with the calculation appears in e-MTA by 15 February at the latest.
Is tax due on a car older than 20 years?
No annual tax is charged on such cars. The registration charge on an ownership change still applies.
Who pays if the car is sold mid-year?
Whoever is the owner in the register. So transfer ownership immediately: until the entry is changed, the obligation stays with the seller.
How much does transferring a used car cost?
It depends on emissions, weight and age. For an ordinary car of ten to twenty years it is usually 240–330 euros; the Transpordiamet calculator gives the exact figure for a specific car.
Can the registration charge be refunded?
Partly, if the car is deleted from the register to be used outside Estonia. The last owner applies within 60 days of deletion, and amounts below 300 euros are not refunded.
Is there a discount for families with children?
Yes, up to 100 euros per child up to and including 18, provided the parent has full custody and a category M1 or N1 car.