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

What is the top income tax rate in Latvia?

The highest marginal income tax rate in Latvia is 0.4%. Your effective tax rate will be lower depending on your income level.

How many tax brackets does Latvia have?

Latvia has 3 income tax brackets. Income is taxed in brackets - you only pay the higher rate on income above each threshold, not on your entire income.

How is take-home pay calculated in Latvia?

Take-home pay in Latvia is your gross salary minus income tax, social contributions, and any applicable surcharges. Use the calculator above to see an exact breakdown for your salary.

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