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 income tax rate in Latvia for employees?

Latvia has a progressive income tax system with rates that increase based on your earnings. The standard rate is 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 exceeding EUR 200,000 (which includes an additional 3% surcharge). These rates apply after deducting the Fixed Personal Allowance of EUR 540 and your employee social contributions.

What are Latvia's social contributions for employees?

Employees pay 10.5% in National Social Insurance Contributions (NSIC) on income up to EUR 105,300, with a maximum contribution of EUR 11,056.50. Income above EUR 105,300 is subject to a 10.5% Solidarity Tax (ST) employee portion, with no upper limit. Both NSIC and ST are deductible from your taxable income, which reduces your overall tax burden.

How much will I take home on a EUR 50,000 annual salary in Latvia?

On a EUR 50,000 gross salary, you would pay approximately EUR 10,500 in employee NSIC (10.5%), then income tax of around EUR 8,990 after applying the EUR 540 personal allowance, leaving you with a take-home pay of roughly EUR 30,610. The exact amount depends on your specific circumstances, so using the calculator on this page will give you a precise figure.

What happens if I earn more than EUR 200,000 in Latvia?

If your annual income exceeds EUR 200,000, an additional 3% surcharge applies to the income above that threshold, bringing your effective tax rate to 36% on those earnings. This surcharge is on top of the standard progressive rates, so high earners face a higher tax burden than those earning below EUR 200,000.

Is there a personal allowance or tax relief available in Latvia?

Yes, Latvia provides a Fixed Personal Allowance of EUR 540 per year, which is applied by your employer and reduces your taxable income. Additionally, your employee NSIC and Solidarity Tax contributions are deductible from your taxable income, providing further tax relief. No dependent allowances are available under the standard model for single employees.

Do tax rates vary by region within Latvia?

No, income tax rates in Latvia are uniform across the country and do not vary by region or municipality. The rates and thresholds described here apply to all employees working in Latvia, regardless of where in the country they are located.

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