The new government will increase VAT and income tax to 24 percent

New taxes:

• From July 2025, it will rise VAT two percentage points.
• From the beginning of 2026, a natural person income tax is also two percentage points.
• They rise additionally alcohol, tobacco and petrol excise duty. Excise duties on alcohol, tobacco and gasoline will increase by an additional five percent per year.
• From the beginning of 2026, as part of a package of tax increases called the security tax, it will come into force two percent tax on corporate profits. The security taxes would be temporary, valid until the end of 2028.

Tax hump:

• A proposed 2025 elimination of the income tax differential known as the tax hump postponed for a year.

Education:

• In addition to free higher education, the new government also plans to give universities the opportunity to ask in certain cases tuition fees for Estonian-language curricula and aim to increase learning opportunities in applied higher education.

Source: https://www.err.ee/1609401385/uus-valitsus-tostab-kaibemaksu-ja-tulumaksu-24-protsendile