In 2025, the land tax rates of many local governments were amended. “The tax rate for residential land and the land use type of yard land on profit-yielding land is between 0.1 % and 1 % this year. The tax rate on profit-yielding land remains between 0.1 % and 0.5 %. The tax rate for land with other intended purpose is between 0.1 % and 2 % this year,” said Riita Parksepp, the owner of the land tax service at the ETCB. The tax rates established by local governments for 2025 can be found on the website of the ETCB.
The limit on land tax increase, i.e. the so-called protective mechanism, also changes. "The protective mechanism is designed to prevent the tax on a plot of land from increasing too sharply compared to the previous year. In 2025, the land tax on each cadastral unit will increase by up to 50% compared to the previous year or by 20 euros if no tax exemptions or tax incentives are applied to the plot. If the increase of 50% compared to last year’s land tax is less than 20 euros, the amount of land tax will increase by 20 euros,” Parksepp explained. However, if tax exemptions or tax incentives are applied to a cadastral unit, the land tax payable in 2025 can differ by more than 50% or 20 euros compared to the tax amount of the previous year.
The amount of the first instalment to be paid also changed. “If the amount of land tax exceeds 100 euros, the amount of the first instalment is at least half, but not less than 100 euros. However, if the total amount of tax is less than 100 euros, the entire amount of tax must be paid in one instalment by the first due date,” Parksepp explained.
The ETCB issues tax notices in the e-services environment and notifies taxpayers of the tax notices by e-mail or text message in February. The due date for payment of the first instalment of land tax is 31 March. The remaining amount must be paid by 1 October.
The ETCB asks people to review their contact details in the e-services environment. “This is necessary so that we can inform people of the land tax notice by e-mail or text message. If we do not have the taxpayer’s e-mail address or mobile phone number, we will send the tax notice on paper by regular mail,” Parksepp added. Data of plots of land can be checked in the Land Cadastre, owner data in the Land Register.
Land tax is a state tax that is levied on all land in Estonia. Tax rates are established by local governments. Land tax is paid in full into the budget of local governments, with the help of which local governments can develop local life and offer services intended for local people. More information about land tax for 2025 can be found from the ETCB web site.
What changes to expect in 2026?
- The decision-making power of local authorities is increasing.
- The limit on land tax increase, i.e. the protective mechanism, decided by the local government by autumn 2025, can be between 10 % and 100%.
- The protective mechanism caps the increase of land tax at 5 euros again.
- The tax incentive for land under home can be up to 1000 euros based on the decision of the local government.
- The tax incentive for retired people can be up to 1000 euros based on the decision of the local government.
