Estonia's tax receipts up a billion euros from same period last year

In the first eight months of 2025, the state budget received €10 billion in taxes — nearly €1 billion more than during the same period last year, data shows.
In August, the state treasury received €1.27 billion in taxes — €116 million more than in August of the previous year. Ninety percent of August's tax obligations were paid on time.
According to the Tax and Customs Board (MTA), the increase in tax receipts is primarily due to changes in tax policy. However, a rise in wage disbursements and a strong payroll also played a role. In August, the total payroll was up 5.5 percent year-over-year.
The payroll grew most significantly in the financial and insurance sectors, while in absolute terms, the largest increase came from manufacturing, where payroll grew by approximately €11 million or 6 percent compared to last August.
The total number of jobs fell slightly across all sectors — down 0.3 percent or about 2,000 positions compared to August 2024. The sharpest decline was seen in retail trade.
"In August and during other summer months, the number of seasonal jobs increases, particularly in the accommodation and food service industries, as well as in arts, sports and recreation. Examples include camps, youth work brigades and agricultural labor," said Raili Roosimaa, MTA deputy director general for taxes.
According to Roosimaa, seasonal work has little impact on overall wage statistics, as the payouts involved are relatively small.
Over the first eight months of the year, the largest increase in tax revenue in absolute terms came from personal income tax, which brought in €173 million more than during the same period last year. In August alone, income tax revenue rose by €35 million compared to the previous year. Social tax receipts grew by €181 million over the same eight-month period, with a €22 million increase in August alone.
Value-added tax (VAT) receipts rose by €194 million over eight months, including €33 million more in August compared to last year. "In addition to the higher VAT rate, cross-border e-commerce continues to grow, which also boosts VAT revenue," Roosimaa noted.
Excise tax receipts also improved. Between January and August 2025, fuel excise tax revenue increased by 7.4 percent (€25 million) and tobacco excise by 1.7 percent (€3 million), compared to the same period last year. The main drivers for both were excise rate hikes, while in the case of tobacco, the growing share of alternative tobacco products continues to contribute.

Alcohol excise tax revenue, however, fell by 4.5 percent or €6.3 million. The tax authority attributed this drop to stockpiling at the end of last year ahead of the rate increase.
Ninety percent of tax obligations due in August were paid on time. While this represents a slight decline compared to last August, overall tax compliance remains strong. Year-to-date, individual tax compliance has fallen slightly — by just over 3 percent — while compliance among legal entities has improved somewhat.
Tax debt decreased by €67.4 million in August. As of September 1, 2025, the total outstanding tax debt stood at €347.6 million, 13.5 percent of which had been deferred. The share of deferred debt rose slightly in August, mainly due to the option to defer motor vehicle tax payments.
As of September 1, the highest share of tax debtors, in percentage terms, was due to unpaid motor vehicle tax. However, this category accounted for just 0.35 percent of the total tax debt. The largest share of debt was related to VAT — VAT debtors made up 29 percent of all tax debtors.
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Editor: Mirjam Mäekivi, Marcus Turovski










