Estonia’s state budget took in EUR 8.8 billion in taxes in the first seven months of 2025, up by EUR 912 million YoY, the Ministry of Finance said.
Tax receipts rose on the back of labor taxes, rate changes and major transactions before and after hikes. In July alone, EUR 1.3 billion was collected, EUR 40 million more than in the same month last year, the ministry added.
According to Raili Roosimaa, deputy director general for taxes at the Estonian Tax and Customs Board (MTA), this year’s collections have remained on a strong growth path each month. She said labor tax receipts are mainly being driven by wage growth and a strong payroll, which was up by 5.4% YoY.
“Tax rate changes and reduced allowances for individuals have also had a significant impact,” she added.
Personal income tax receipts grew by 21%, or EUR 289 million, fueled by the higher tax rate and the loss of several deductions, which meant less money was refunded than in previous years.
Social tax receipts were up by EUR 159 million, driven by rising wage payments.
Value-added tax (VAT) receipts climbed by EUR 161 million in seven months. The new standard VAT rate, which took effect in July, pushed receipts EUR 28 million higher than the same month last year.
Roosimaa said VAT receipts had been boosted by rising prices, the unusually high June take ahead of the rate hike as well as the higher VAT rate itself.
Corporate income tax receipts were up EUR 163 million on year over seven months, but fell sharply in July, dropping nearly EUR 50 million compared with July 2024. Roosimaa noted last year’s July take was unusually high due to banks’ strong performance and large one-off profit payouts.
Excise duty receipts stayed on an upward trend overall, though alcohol excise receipts dropped by EUR 6.5 million after heavy stockpiling ahead of last year’s hike.
As of August 1, tax debts stood at EUR 415 million, down by EUR 915,000 from a month earlier. Of that, 11.6% was deferred.
The number of debtors fell by nearly 16,800 in July, largely due to payment of the motor vehicle tax, or car tax. VAT debt, however, rose by nearly EUR 1 million.
Roosimaa said the VAT debt was likely linked to June’s surge in transactions before the rate hike, which swelled declared sums but reduced firms’ ability to pay in July.
“We see that 88.3% of July due-date claims were paid on time, slightly down from before,” she said, adding that she hoped claims would be settled until year’s end. (ERR)