In the first five months of 2026, approximately 6.2 billion euros in tax revenue was collected. This is 115 million euros more than during the same period last year. The largest contributors to the increase in revenue were VAT (+245.6 million euros), social tax (+117.9 million euros), and fuel excise duty (+28.2 million euros).
Graph: Tax receipts in the first five months of 2025 and 2026
VAT receipts in May amounted to over 384 million euros, which is 27.9 million euros more than in May last year. The growth in VAT revenue was driven primarily by retail trade, including the retail sale of motor fuels, where revenue was influenced by higher fuel prices compared with last year.
Personal income tax revenue in May totalled over 239 million euros, which is 24.5 million euros less than in the same month last year. This was influenced by the change in the system for calculating basic exemption at the beginning of the year. The wage fund grew by 4.8% year on year, increasing social tax revenue to 448.5 million euros – up by approximately 18.8 million euros from May last year.
Corporate income tax revenue in May exceeded 63 million euros, which is 13.7 million euros more than in last year's May. The increase in revenue was driven by higher dividend declarations by private-sector companies. The largest amounts of dividends were declared in the real estate, wholesale and retail trade, and financial and insurance sectors.
Fuel excise duty revenue in May amounted to 47 million euros, which is approximately 1.8 million euros more than in May of last year. In May, over 3.1 million litres of petrol and diesel fuel were released for consumption, which is 3.4% more than a year earlier. This indicates consistent market demand, driven by prices that are lower than in the other two Baltic states. Fuel excise duty revenue has also remained stable over the past few months.
Tobacco excise duty revenue in May was 20.2 million euros, or 100,000 euros more than in May last year. Thus, tobacco excise duty revenue remained at the same level as last year. Although the quantities of cigarettes released for consumption in May decreased year on year, the quantities of alternative tobacco products (nicotine pouches, e-cigarettes) increased. This shows changes in consumer preferences: cigarette use is declining, and a portion of consumers have shifted to alternative tobacco products.
Alcohol excise duty revenue in May was 20 million euros – approximately 800,000 euros more than a year ago. The large-scale stockpiling of spirits and beer that took place at the end of 2025, ahead of the excise duty increase, still affects the quantities released for consumption.
Graph: Tax receipts in May 2026 compared with May 2025 for selected taxes
As at 1 June 2026, total tax arrears amounted to 346 million euros, of which 47.2 million euros consisted of deferred tax arrears.
Tax arrears rose by 1.4 million euros in May. The largest increases were seen in VAT arrears (1.8 million euros), withheld income tax arrears (428,500 euros), and social tax arrears (270,900 euros). At the same time, tax arrears decreased the most due to payments of land tax (498,700 euros), income tax of natural persons (428,500 euros), and motor vehicle tax (98,200 euros).
Although tax arrears increased during May, tax discipline has remained consistently strong – approximately 90% of all tax obligations due in May were paid on time. The arrears increased primarily due to a few large tax liabilities, but most taxpayers continue to pay their taxes on time.
In May, the bulk of the tax arrears was concentrated in the wholesale and retail trade, construction, and manufacturing sectors, where tax arrears consistently account for nearly half of the total arrears. Most of the arrears in those sectors are related to VAT, special income tax, and labour taxes.
At the end of May, there were close to 54,400 persons with tax arrears, which is 5,400 less than at the end of April. The number of debtors fell primarily because 5,000 people paid their land tax. Of these, 3,900 were private persons, whose total debt balance decreased by nearly 304,000 euros, and nearly 820 were legal persons, whose total debt balance was down by close to 195,000 euros.
Graph: Tax debt balance by sector as at 1 June 2026
The Tax and Customs Board is available to assist taxpayers with fulfilling and deferring their tax obligations. In case of temporary payment difficulties, the ETCB recommends applying for a deferral of tax debt through the e-MTA e-services environment. When deferring a liability, payments can be made in instalments over a period of 2 to 24 months, but interest will be added.
More information on payment of tax arrears in instalments for private clients and business clients 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 center section.
Overview of tax receipts is available on the website of the Tax and Customs Board.
