Latvia Tax Calculator (2026)
Income tax rates and take-home pay for Latvia
Advertisement
Latvia Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| Progressive rate up to NSIC cap | €0 - €105,300 | 25.5% |
| Higher rate above NSIC cap | €105,300 - €200,000 | 33.0% |
| 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 - €105,300 | 10.5% |
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 has a progressive income tax system with rates that increase based on your income level. Up to EUR 105,300 annually, you pay 25.5% income tax; between EUR 105,300 and EUR 200,000, the rate jumps to 33%; and any income above EUR 200,000 is taxed at 36%. You also receive a fixed personal allowance of EUR 540 that reduces your taxable income.
What are Latvia's social contributions and how do they work?
As an employee, you contribute 10.5% to the National Social Insurance Contribution (NSIC) on income up to EUR 105,300, capped at EUR 11,056.50 annually. Income above EUR 105,300 is subject to a Solidarity Tax at an effective 10.5% rate with no maximum cap. Both contributions are deductible from your taxable income, which lowers your overall tax burden.
At what income level do I pay the highest tax rate in Latvia?
The highest marginal tax rate of 36% applies to any income you earn above EUR 200,000 per year. This includes the base 33% rate for income above EUR 105,300 plus an additional 3% surcharge on earnings over EUR 200,000.
Do I need to account for different tax rates in different regions of Latvia?
No, Latvia does not have regional or subnational income tax variations. The tax rates and brackets apply uniformly across the entire country, regardless of which city or region you work or live in.
How does the NSIC cap affect my take-home pay?
The NSIC has a maximum contribution of EUR 11,056.50 per year on income up to EUR 105,300. Once your income exceeds EUR 105,300, you stop accumulating NSIC and instead pay the Solidarity Tax at 10.5% on all income above that threshold with no upper limit, which effectively increases your total tax burden on higher earnings.
Advertisement
Other tax calculators
Compare Latvia with another country
See side-by-side tax breakdowns for any two countries