Graph: Tax receipts in the first three months of 2025 and 2026
Raili Roosimaa, Deputy Director General for Taxes at the Estonian Tax and Customs Board, said that total tax revenue increased primarily due to VAT and social tax.
VAT receipts in March amounted to nearly €387 million, which is over €65.6 million more than in March last year. “VAT revenue for the entire first quarter has been very strong; in three months, we have collected €172 million more than during the same period last year,” Roosimaa noted. “Compared with March last year, VAT revenue was most influenced by collections in the retail and wholesale sectors. Among other factors, rising fuel prices and motor vehicle sales had a significant impact,” she added. Total domestic sales in March increased the most in the trade and construction sectors.
The wage fund grew by 6.3%, increasing social tax revenue to €440 million – up by approximately €25.3 million from March last year.
Personal income tax revenue in March totalled just over €39 million, which is €57.4 million less than in the same month last year. The reason for the lower revenue is the refund of overpaid income tax based on tax returns. This year, the Tax and Customs Board issued income tax refunds faster than in previous years, with a large portion of these refunds occurring in March.
Corporate income tax revenue in March amounted to €63.7 million, which is over €7 million more than a year ago. The growth was mainly due to higher dividend payments and increased collection of advance income tax from credit institutions. The greatest contributors to revenue were financial and insurance activities, professional, scientific and technical activities, and manufacturing.
Fuel excise duty revenue amounted to over €49 million in March, which is approximately €6.5 million more than a year earlier. According to Raili Roosimaa, the growth was mainly driven by increased demand, resulting in an increase of 11 million litres in the volume of fuel released for consumption compared with the previous year. This is also reflected in retail fuel sales data: retail sales of petrol grew by 6.2% in March, and retail sales of diesel fuel by 4.2%.
Year on year, retail sales of petrol increased in thirteen counties in March, with the largest rise in Harju county (6.4%). Retail sales of petrol decreased in two Estonian counties, with the largest drop in Rapla county (2.5%). Retail sales of diesel fuel fell in six counties during the same period. The largest decline was seen in Jõgeva county (8.4%). In nine counties, retail sales of diesel fuel increased, with the largest rise in Pärnu county (18.1%).
“In March, compared with the previous month, both demand and fuel excise duty revenue declined due to rising fuel prices. Higher prices made consumers more price-sensitive, which led to a slight decline in fuel sales volumes and a decrease in fuel excise duty revenue by approximately €1.6 million,” explained Roosimaa.
In quarterly terms, fuel excise revenue has increased by €27 million compared with the first quarter of last year, and approximately 41 million more litres of fuel have been released for consumption.
Tobacco excise duty revenue in March was approximately €20 million, or €2 million more than in March last year, with the vast majority coming from cigarettes (around €19 million). The increase in revenue was due to both the rise in excise duty rates at the beginning of the year and a slight increase in the volume of tobacco products released for consumption in March compared with the previous year.
Alcohol excise duty revenue in March amounted to approximately €15 million, which is over €900,000 more than a year ago. This change was partly due to stockpiling before the price increases and a higher volume of lower-strength alcoholic beverages released for consumption. Year on year, the volume of beer released for consumption was up by 4%, while the volume of spirits released for consumption was down by 5%.
Graph: Tax receipts in March 2026 compared with March 2025 for selected taxes
As at 1 April 2026, total tax arrears amounted to €352.8 million, of which €51.3 million consisted of deferred tax arrears.
Tax arrears decreased by €3.6 million in March. The largest decreases were in VAT (€3.7 million) and fuel excise duty (€1.9 million), which are primarily related to enterprises fulfilling their tax obligations. However, land tax arrears increased by €3.8 million, which is related to the arrival of the first instalment deadline for land tax on 31 March and primarily affected natural persons.
In March, the bulk of the tax arrears was concentrated in the wholesale and retail trade, construction, manufacturing, and transportation and storage sectors. Tax arrears in these sectors accounted for approximately 63.4% of total tax arrears. Most of the arrears in these sectors were related to VAT, special income tax, and labour taxes.
The number of persons with tax arrears at the end of March was 80,800, which is 26,300 more than a month earlier. The increase was primarily due to the deadline for the first instalment of land tax, which affects many natural persons, who generally have smaller tax liabilities. Therefore, land tax, similarly to motor vehicle tax, affects the total number of persons with tax arrears, and the increase in their number does not indicate a general deterioration in payment behaviour. “The rise in the number of debtors after a tax deadline is expected and always short-term. This is also the case with land tax, where obligations are largely fulfilled or deferred shortly after the deadline. Approximately 85% of taxpayers paid their land tax on time. This figure remained at the same level as a year ago,” Roosimaa said. As at 1 April, 46,800 persons had unpaid land tax liabilities amounting to €5.3 million, and 12,930 persons had unpaid motor vehicle tax liabilities amounting to €1.4 million, accounting for 1.51% and 0.39% of the total debt balance, respectively. 
Graph: Tax debt balance by sector as at 1 April 2026
The Tax and Customs Board fully supports taxpayers in meeting their obligations. If you have an outstanding tax liability, it is worth reviewing your options for paying it in the near future or, if necessary, arranging a payment plan. We are always happy to advise you and work with you to find suitable solutions.
Tax liabilities can be viewed in the Tax and Customs Board's e-services environment, e-MTA.
More information on the rescheduling of tax arrears for private customers and companies is available on the website of the Tax and Customs Board. Instructions and FAQs can also be accessed by logging into the e-services environment e-MTA and selecting “Payments of tax liabilities in instalments” in the Help centre section.
Overview of tax receipts is available on the website of the Tax and Customs Board.
