How Estonia's new car tax charges for CO₂ and weight

Estonia had no recurring car tax until 2025, which made its introduction one of the most-searched car-tax changes in the region that year. The design charges two things separately: how much CO₂ the car emits per kilometre, and how heavy it is — a car can owe money on either basis, both, or neither.

The annual tax starts from a 50 EUR base. Every gram of CO₂ the car emits per kilometre above a 117 g/km threshold adds 3 EUR; every kilogram of mass above a 2,000 kg threshold adds 0.20 EUR. A car at or below both thresholds pays only the base amount. The one-time registration tax, due when a car first enters the Estonian register, uses the same two thresholds but a different base (300 EUR) and CO₂ rate (5 EUR per gram) — so a new import pays both the registration charge once and the annual charge every year after.

The two thresholds are deliberately independent: a light but high-emission car (a small petrol hatchback, say) is charged only on the CO₂ side, while a heavy but efficient one (many EVs and large hybrids) can be charged only on the mass side despite emitting nothing. Fully electric cars pay no CO₂ component by definition but are not exempt outright — the mass charge still applies once a car crosses 2,000 kg, which some larger EVs do.