Toxoplasma gondii is a zoonotic parasite of major veterinary and public health importance. The parasite is common in many host species in Estonia, however, information about the seroprevalence in the local sheep population is lacking. We estimated T. gondii seroprevalence and evaluated a limited selection of possible risk factors for T. gondii seropositivity in sheep raised in Estonia. Sera from 1599 sheep from 122 flocks, collected during 2012-2013, were diluted to 1:40 and screened for the presence of anti-T. gondii immunoglobulin G antibodies using a commercial direct agglutination test. The cutoff titer for seropositivity was 40. A total of 667 of the 1599 sheep were T. gondii seropositive, yielding an apparent seroprevalence estimate of 41.71% (95% confidence interval 39.31-44.14). At least one seropositive sheep was detected on the majority (88.53%) of the farms. T. gondii seroprevalence was significantly lower in lambs (age <12 months) than in adults (age ≥12 months) (11.11% and 42.16%, respectively). The seroprevalence increased steeply with age in the first years of life. A multivariable random-effects logistic regression model identified being an adult (odds ratio [OR] 9.55) and being from a farm located on the islands (OR 2.51) as risk factors for T. gondii seropositivity, while being of Texel breed appeared as a protective factor (OR 0.34) when compared with the Estonian Blackhead breed. Exposure to T. gondii was widespread among the investigated sheep. Undercooked meat and unpasteurized milk from sheep from Estonia should be considered possible sources of T. gondii infections to other hosts, including humans.