Opinion polls indicate a close race between the Baltic nation's governing center-right coalition, led by Prime Minister Taavi Roivas' Reform Party, and the opposition Center Party, which is favored by the country's ethnic Russians. The ruling coalition holds 52 of the 101 seats in parliament.
Even though Estonia is a NATO member, many are worried that Moscow might try to boost its influence in the country, a former Soviet republic where one-fourth of its 1.3 million residents are ethnic Russians.
Defense Minister Sven Mikser said Sunday that Estonia should improve its defense capabilities "to maintain solidarity with Western nations."
The Center Party has a more lenient attitude to Moscow and has refrained from criticizing Russia's annexation of Crimea and its actions in Ukraine.
By midday, 42 percent of the almost 1 million electorate had cast ballots. They included 176,000 who voted electronically, setting a record in Estonia, which pioneered voting with its first online election in 2005.
All wage earners pay a flat 20 percent income tax, which opposition centrists want to change to a progressive tax system, a move also supported by the minority government partner, the Social Democrats.
The Reform Party is opposed to abolishing the current tax system, focusing instead on job creation to improve the economy of Estonia, a member of the eurozone since 2011.
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