2026 is underway, bringing with it a series of changes and events across Estonia. From tax adjustments and leadership roles in regional cooperation to sporting events and infrastructure projects, here’s a look at what’s anticipated in the coming year.
Tax Changes
A simplified tax system will take effect, eliminating the current “tax hump” and applying a uniform basic exemption of up to €700 per month for all employees. The Tax and Customs Board anticipates that many employees will see an increase in their net wages starting January 1, 2026. More information is available on the agency’s website here.
Excise duty rates on tobacco products and alcohol will rise by 10 percent beginning January 1. Further increases to excise duty on electricity and other fuels are scheduled for May 1.
Estonia Leads Baltic and Nordic Formats
In 2026, Estonia will chair both the Baltic Council of Ministers and the Nordic-Baltic 8 (NB8) cooperation formats. The NB8, established in 1992, brings together five Nordic and three Baltic states to discuss regional and international issues. Cooperation within the group has intensified since the start of Russia’s invasion of Ukraine in 2022.
During its NB8 chairmanship, Estonia aims to “strengthen the region’s unity and visibility and to broaden cooperation across different sectors,” with the goal of “deepening cohesion, enhancing the region’s competitiveness and increasing its overall resilience,” according to the Ministry of Foreign Affairs. Further details can be found here.
FIS Nordic Combined World Cup Stage in Otepää
Otepää, in southern Estonia, will host the FIS Nordic Combined World Cup Stage from January 9-11. The event is expected to draw strong competitors from around the world, alongside Estonia’s top athletes.
Tartu-Riga Train Connection
The Tartu-Riga train service, long-planned and delayed, is scheduled to launch in January. Passenger train operator Elron received permission to operate on Latvian tracks in December. The first connection from Estonia’s second-largest city to the Latvian capital is planned for January 12. More information is available here.
Kallaste Karakatitsa 2026
The town of Kallaste will host an event on February 28 showcasing *karakatitsas* – unique, homemade ice vehicles used by local fishermen on frozen Lake Peipus. The event will include a parade of these vehicles, along with local food, drinks, and cultural performances. More details can be found here.
European Disc Golf Festival
Tallinn will host a major disc golf event, a PDGA Major, from June 16–21. The Song Festival Grounds will be transformed into a disc golf course, attracting top players from around the world.
Rally Estonia
The FIA World Rally Championship stage WRC Rally Estonia 2026 will take place on the roads of Tartu and South Estonia from July 16-19. The race will start and finish in Tartu’s Town Hall Square, and will feature the fast gravel roads of the Lake Peipsi area.
Presidential Election
With President Alar Karis’ term ending in August, a new head of state will be elected this summer. Potential candidates are expected to announce their intentions in the coming months. The election process involves votes from Riigikogu members and other representatives, and it remains to be seen if a consensus candidate will emerge.
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