Nearly 335,000 private persons will have to pay a total of approximately 21 million euros of land tax by 31 March. Almost 35,000 legal person property owners must pay a total of approximately 27 million euros by the same deadline. The remaining tax liability must be paid by 1 October.
Riita Parksepp, service owner of the land tax service at the ETCB, reminds homeowners that the tax incentive for land-under-home still applies this year. “If you have taxable land and have not yet checked your tax liability, you can do so and conveniently pay the tax in our e-services environment e-MTA by selecting Taxes – Land tax – Land tax notices and land data,” Riita Parksepp said.
What is different about land tax this year?
- The amount of the first instalment that landowners must pay has changed. If the total land tax amount within the area of one local government is more than 100 euros, the first instalment is at least half, but not less than 100 euros. However, if the tax amount is less than 100 euros, the entire tax amount must be paid by the first deadline. If taxable properties are located in several local governments, the amount of the first instalment may exceed 100 euros.
- The land tax rates of many local governments changed. The land tax rates for residential land and the land use type of yard land on profit-yielding land will range from 0.1% to 1% this year. The tax rate for profit-yielding land is still 0.1-0.5% everywhere. However, the tax rates for land with other intended use are between 0.1% and 2% this year. The tax rates established by local governments for 2025 can be viewed on the ETCB’s website.
- The limit on land tax increase, or the protective mechanism changed. The protective mechanism is designed to prevent the land tax from increasing too sharply compared to the previous year. In 2025, the land tax for each cadastral unit will increase by up to 50% or 20 euros for each owner compared to the previous year, if no tax exemptions or incentives apply to the plot of land. If the 50% increase compared to the previous year's land tax is less than 20 euros, the land tax amount will increase by 20 euros. However, if the cadastral unit has tax exemptions or incentives, the land tax to be paid in 2025 may differ by more than 50% or 20 euros compared to the previous year's tax amount.
The basis for calculating the tax is the value of the land, which is determined by the Land and Spatial Development Board. For questions regarding land valuation, please contact the Land and Spatial Development Board at [email protected]. For information on land tax rates, please contact the local government of the land location. For questions regarding the calculation and payment of taxes, it is best to contact the Tax and Customs Board.
Land tax is a national tax that taxes all land in Estonia. Tax rates are set by local authorities. Land tax is received in full into the budget of the local government, and with its support, local governments can develop local life and provide services for their residents.
Read more about land tax on the ETCB’s website.
