Estonian tax system consists of state taxes provided and imposed by tax Acts and local taxes imposed by a rural municipality or city council in its administrative territory pursuant to law. Tax is a single or periodic financial obligation which is imposed on taxpayers by an Act or a rural municipality or city council regulation issued pursuant to an Act for the performance of the public law functions of the state or local governments or to obtain revenue required therefor and which is subject to performance pursuant to the procedure, in the amount and within the terms prescribed by an Act or a regulation, without direct compensation to taxpayers therefor.

State taxes are: income tax, social tax, land tax, gambling tax, value added tax, customs duty, excise duties, heavy goods vehicle tax.

Local taxes are: sales tax, boat tax, advertisement tax, road and street closure tax, motor vehicle tax, animal tax, entertainment tax, parking charge.