how to filter blog posts by taxonomy and by year I have been trying to build a filter fuctionality for blog posts. I would want to filter by taxonomy terms and by the year the post was published. So basically in the content I want to list all blog posts – on sidebar I would have all used taxonomy terms listed and also a list of all years/months when post have been published. 

Additionally I want the filter to be reflected by the URL structure: 


For a URL like  domain.com/blog/2014 all posts from 2014 would be listed. 
For a URL like domain.com/blog/cars only posts tagged with 'car' would be listed.


Is there a module to do this – or should this be done with views? I have been trying to do this with views now but with not much luck. Especially with the url I don't understand how i can do that. Or if there is some tutorials on somewhere – that would help also.
You're on the right track. Views is good way to solve this with Contextual Filters. You need to create a page view with the path blog. That will create a page example.com/blog that shows all blog posts. 

Adding a Content: Created year contextual filter will set up a filter rule so that example.com/blog/XXXX filter the view by posts created on year XXXX.

For your last need, tag filtering, you're going to need to add another page view since a page view can't do a mixed contextual filtering; views doesn't know how to treat XXXX in example.com/blog/XXXX as both a year or tag. 

See this post on how to set up a filter Content: Has taxonomy term ID filter that will you create something like example.com/tags/YYYY where YYYY is the name of your tag.