The figure for 2025 was slightly more than forecast in that year's state budget – a figure slightly under €15 billion in tax revenues had been forecast for last year.
Comparing December 2025 to the same month in 2024, tax revenues were €111.4 million higher, the MTA said.

The main factors for the year-on-year rise in tax revenues in 2025 were personal income tax, value-added tax (VAT) and social tax. VAT had seen a two percentage point hike to 24 percent in summer 2025, and the income tax rate had gone up at the start of 2025.

Over the whole year, in addition to higher tax rates, receipts were also influenced by a strong wage bill, which grew by 5.1 percent during the year, Raili Roosimaa, the MTA's deputy director general for taxation, said.

Non-tax revenues exceeded the previous year's level by a fifth, due to increased foreign support and higher revenues from the sale of goods and services.

Among other factors, growth was also driven by the introduction of a vehicle registration fee, the Ministry of Finance noted.

Tax arrears were €367.6 million in January 2026

As of 1 January 2026, total tax arrears amounted to €367.6 million, an increase of €25.5 million over the year. At the beginning of the year, the largest tax arrears were in the construction sector, wholesale and retail trade, motor vehicle and motorcycle repair, manufacturing, and administrative and support service activities.

The number of tax debtors increased by more than 32,200 persons during December, of whom more than 28,900 were individuals, as opposed to companies. The increase in the number of debtors was influenced by the due date of the second installment of the motor vehicle tax on December 15, and the arrival of payment deadlines for new tax notices at the end of December, the MTA said.

As of 1 January 2026, deferred tax arrears amounted to €52.5 million: The number of tax debtors had doubled year-on-year by January 1, 2026, by which time there were over 78,600 tax debtors.

This growth was again mainly driven by motor vehicle tax liabilities, which previously did not exist.

Roosimaa noted this was also logical in that while individual debts here are modest, the number of taxpayers in arrears is high.

"For other types of taxes, the number of debtors has remained stable compared with the beginning of the year," Roosimaa said.

General government deficit was €532 million by year-end

By year-end, the general government deficit reached €532 million, or 1.3 percent of projected GDP.

Despite increased defense spending, the general government budget deficit decreased by half a percentage point of GDP compared with the previous year, supported by tax revenues. At the same time, the state's financial position remains strained, and this year the deficit will deepen further due to continuously rising defense expenditure, said Kadri Klaos, head of the state finance department at the Ministry of Finance.

Central government deficit was €379 million, local government's €83 million

The central government deficit reached €379 million by year-end, slightly exceeding the forecast level due to higher expenditure at the end of the year. Strong tax revenues helped improve the budget position compared with 2024, even as "a significant increase in the deficit as defense spending rises," was forecast, Klaos noted.

Central government includes state budget institutions as well as state foundations, companies and public-law institutions.

As of the end of last year, the budget deficit for all 79 local governments in Estonia had risen to €83 million.

Personal income tax, social tax, VAT, excise and corporate tax revenues all up in 2025

More than €3 billion in personal income tax was collected in 2025, the largest absolute increase over the year at a total of €498 million, including nearly €33 million in December alone.

Approximately €5.2 billion in social tax was collected over the year, a rise of €261 million on 2024's figure, and a rise of €7.7 million for December alone.

Corporate income tax revenues came to €1.1 billion for the year, also up on the year, by €162 million, mainly due to the tax rate rise that took effect in January 2025, which resulted in an exceptionally large amount of income tax revenue that month, the Tax and Customs Board noted.

Approximately €4.2 billion in VAT was collected over the year, about €330 million more than in 2024, marking nearly 9 percent growth. December 2025 VAT revenues were around €12 million higher year-on-year.

The MTA said the rise was largely driven by the summer VAT rate hike, reflected in the rest of the year, along with steady e-commerce growth and increased autumn fuel sales.

The largest contributions to VAT revenue came from the wholesale and retail trade sectors and the construction sector, where VAT receipts increased the most in total compared with 2024.

Nearly €1.1 billion was collected in excise duties over the year, €57.6 million more than in 2024, with fuel excise making up about half.

All categories of excise duty generated more revenue in 2025 than in 2024: About €37 million more from fuel, over €10 million from tobacco, over €3 million from alcohol, €4.5 million more from electricity and about €49,000 more from packaging. Excise revenue was influenced by tax rate increases and higher permitted consumption of fuel and tobacco.

No further changes to tax rates or types of tax were made in 2025, and a planned tax rate increase for 2026 was canceled; corporate income tax revenues for each month after January were similar to those seen in 2024.

Health Insurance Fund in deficit, Unemployment Insurance Fund in surplus

The Health Insurance Fund (Tervisekassa) ended the year with an €88 million deficit, driven by rapidly rising expenditure due to higher healthcare costs after the coronavirus crisis and an expanded range of services, Klaos said.
Klaos noted that while this was a 15-year high for the deficit, it was better than forecast, thanks to greater social tax revenues than expected, and lower spending on healthcare than forecast.

Nonetheless, the Health Insurance Fund's financial situation will remain difficult in the coming years, and a similar deficit is planned for the following years. The fund's annual expenditure exceeds €2.5 billion, and its reserves amount to just over €600 million.

The Unemployment Insurance Fund's (Töötukassa) position at the end of 2025, on the other hand, was not only better than forecast, but also in the black, with a surplus of €19 million. The fund's total expenditure is approaching €1 billion, and its reserves, like those of the Health Insurance Fund, amount to just over €600 million. A small surplus is thus forecast for the coming years.

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