Latvia Tax Calculator (2026)

Income tax rates and take-home pay for Latvia

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Latvia Income Tax Brackets (2026)

Bracket Income Range Rate
Progressive rate up to NSIC cap€0 - €105,30025.5%
Higher rate above NSIC cap€105,300 - €200,00033.0%
Additional 3% surcharge on income above EUR 200,000€200,000+36.0%

Personal allowance: €540

Employee NSIC (income up to EUR 105,300)

Bracket Income Range Rate
Standard employee NSIC rate€0 - €105,30010.5%

Capped at €11,057 per year

Employee Solidarity Tax (income above EUR 105,300)

Bracket Income Range Rate
ST employee portion (10.5%)€105,300+10.5%

Key Facts

Tax Year

2026

Currency

EUR

Top Rate

36.0%

Brackets

3 brackets

Allowance

€540

Social Contributions

2 items

Assumptions

  • · Model represents a resident employee working for a Latvian/EU/EEA company.
  • · NSIC income cap of EUR 105,300 is applied; income above this threshold is subject to Solidarity Tax (ST) at effective 25% (split 23.59% employer + 10.5% employee, recalculated to 25% effective).
  • · Additional 3% PIT applies to total annual income exceeding EUR 200,000.
  • · Fixed Personal Allowance (FPA) of EUR 540 is applied by employer.
  • · No dependent allowance is assumed (representative single adult model).
  • · No disability relief assumed.
  • · NSIC is deductible from taxable income.
  • · Employer-side social contributions (23.59% below cap, part of ST above cap) are excluded per schema rules.
  • · Dividend and capital gains income not modeled (representative employment income only).
  • · Minimum wage threshold for NSIC (EUR 780/month) does not affect full-time employees.

Frequently asked questions

How much income tax will I pay as an employee in Latvia?

Latvia uses a progressive tax system with rates starting at 25.5% on income up to EUR 105,300, then 33% on income between EUR 105,300 and EUR 200,000, and 36% on income above EUR 200,000. You'll also pay 10.5% employee NSIC (social contributions) on income up to EUR 105,300, which is deductible from your taxable income. A fixed personal allowance of EUR 540 further reduces your tax burden.

What happens to my taxes if I earn more than EUR 105,300 per year?

Once your income exceeds EUR 105,300, you move into a higher tax bracket with an effective rate of 33%, plus you become subject to the Solidarity Tax at 10.5% on the amount above the cap. This means your marginal tax rate jumps significantly, so it's important to factor this into salary negotiations or income planning.

Is there an extra tax if I earn over EUR 200,000?

Yes, an additional 3% surcharge applies to any income exceeding EUR 200,000 per year, bringing the top marginal rate to 36%. This surcharge is on top of the standard income tax and Solidarity Tax, so high earners face a notably higher overall tax burden.

Are employee social contributions deductible from my taxable income?

Yes, both the standard employee NSIC (10.5% up to EUR 105,300) and the Solidarity Tax contribution are deductible from your gross income before calculating income tax. This means you don't pay income tax on the amount you contribute to social security, which provides some tax relief.

What's the difference between NSIC and Solidarity Tax in Latvia?

The NSIC (Obligatory State Social Insurance Contributions) is the standard 10.5% employee contribution that applies to income up to EUR 105,300 and has a maximum annual cap of EUR 11,056.50. The Solidarity Tax is an additional 10.5% contribution that applies to income above EUR 105,300 with no cap, effectively creating a higher tax bracket for higher earners.

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