Resumen
In this paper an overview of tax benefits granted by Estonian legal acts is given, andextent of tax benefits use by resident natural persons using the data from databasesof Estonian Tax and Customs Board (ETCB) is analyzed. Also the possibility of taxbenefits classification is considered and to whom and on which purposes stated taxbenefits are addressed is analyzed. Research based on three years data shows that inEstonia tax benefits for individuals are widely used. On average uncollectedamounts of tax due to tax benefits approximately equal 9% of the state budgetrevenues. Large amount of tax benefits is not a negative indicator per se but they aiddistributed incomes to reach people who really need those benefits. In opposite casetax benefits are not reasoned but they rather create additional administrativeworkload. Talking about Estonian tax system roughly half of tax benefits isaddresses to people who belong to low income stratum, at the same time remarkableproportion of benefits may be directed to middle-class and wealthy people.