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 - €105,300 | 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
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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