Happy New Year! 2026 is finally here, but what can we expect over the coming 365 days? ERR News outlines some of the events and changes of the coming year.
Tax changes
Alcohol. Source: Jenny Va / ERR
The current so-called tax hump will disappear from the new year and a uniform calculation of basic exemption of up to €700 per month will apply to all employees.
As a result of the amendment, many employees will have more money than before in their hands from the wages earned as of January 1. 2026, the Tax and Customs Board says. You can find out more information on the agency’s website here.
From January 1, excise duty rates on tobacco products and alcohol will increase by 10 percent. From May 1, excise duty on electricity and many other fuels will increase.
Estonia leads Baltic and Nordic formats
The Baltic Council of Minister’s annual prime ministers meeting was held in Latvia in 2025. Source: Latvian Prime Minister’s Office
In 2026, Estonia will lead the Baltic Council of Ministers and Nordic-Baltic 8 cooperation formats.
Nordic–Baltic cooperation, or NB8, is a regional cooperation format that, since 1992, has brought together five Nordic and three Baltic states to discuss current issues of regional and international importance in an informal setting.
The grouping has become more significant since the start of Russia’s full-scale invasion of Ukraine in 2022, the countries cooperating closely and issuing joint statements.
Estonia’s goal during its NB8 chairmanship in 2026 is to “strengthen the region’s unity and visibility and to broaden cooperation across different sectors.” The ultimate aim is to “deepen cohesion, enhance the region’s competitiveness and increase its overall resilience,” the Ministry of Foreign Affairs said.
More information here.
FIS Nordic Combined World Cup Stage in Otepää
Otepää Nordic Combined World Cup stage, Friday, January 6, 2023. Source: Adam Illingworth / Eesti Suusaliit
From January 9-11, Otepää in south Estonia will host the FIS Nordic Combined World Cup Stage.
Strong competitors from all over the world are expected to participate, and Estonia’s best will also be competing.
Tartu-Riga train connection
Elron started testing its trains in Latvia in 2025. Source: Aron Urb/Elron
The long-planned – and long-delayed – Tartu-Riga train service is expected to launch in January.
In December, passenger train operator Elron said its trains had finally been granted permission to operate on the Latvian tracks.
The first connection from Estonia’s second-largest city to the Latvian capital is scheduled to take place on January 12.
More information here.
Kallaste Karakatitsa 2026
Kallaste Karakatitsa 2019. Source: Jevgeni Zavadski
In winter, when Lake Peipus is covered with ice, you can see unique homemade vehicles driving across the frozen surface — large-wheeled ice cars known as karakatitsas. These machines are a traditional invention used by local fishermen to move safely over the lake.
On February 28, the town of Kallaste will hold an event where all the most impressive ice vehicles will take part in a festive parade. Alongside the spectacle, visitors can enjoy local food, warm drinks and a cultural programme.
You can find out more here.
European Disc Golf FestivalÂ
Fourth day of the European Disc Golf Championships 2023. Source: Siim Lõvi/ERR
From June 16–21, Tallinn will host one of the biggest disc golf events on the planet — a PDGA Major.
The Song Festival Grounds will transform into a disc golf haven as top players from around the globe come together to take on the challenging Rockstar course.
Rally Estonia
2023’s Rally Estonia in progress. Source: Karli Saul
From July 16-19, the FIA ​​World Rally Championship stage WRC Rally Estonia 2026 will be driven on the roads of Tartu and South Estonia.
The start and finish podium of Delfi Rally Estonia and the grand opening ceremony will be located in its traditional location in the city center of Tartu, in the Town Hall Square, and the race route will once again include the fast technical gravel roads of the Lake Peipsi area.
Presidential election: Who will become Estonia’s next president?
Ballots being counted at the first round of the 2021 presidential election. Source: Erik Peinar, Chancellery of the Riigikogu
President Alar Karis’ five-year term ends in August and a new head of state will be elected in the summer. Karis has shown little interest in continuing in the role.
Estonia’s head of state is not directly elected by the public, instead relying on votes from Riigikogu members and other representatives from across the country. Interested candidates will announce themselves in the coming months.
It is not yet known who could step into his shoes, or if the Riigikogu will be able to unite around a common candidate. Previous attempts have failed at recent elections.
—
Follow ERR News on Facebook and Twitter and never miss an update!