Country Hub · Latvia · 2026

Latvia

20% (up to €20,004); 23% (€20,004–€78,100); 31% above · Employee social ~10.5% · Eurozone (EUR) since 2014 · Riga startup hub

20% (up to €20,004/year); 23% (€20,004–€78,100); 31% (above €78,100)

Income Tax Rates

Up to €3,840/year (full; tapers above; zero above €22,750/year)

Non-Taxable Minimum

~10.5% (pension 10%, disability/sickness 0.5%)

Employee Social Contributions

Calculate Your Latvia Tax

Latvia Tax Facts

— 2026

Income Tax Rates

20% (up to €20,004/year); 23% (€20,004–€78,100); 31% (above €78,100)

Non-Taxable Minimum

Up to €3,840/year (full; tapers above; zero above €22,750/year)

Employee Social Contributions

~10.5% (pension 10%, disability/sickness 0.5%)

Capital Gains Tax

20% on capital gains (with exemptions for long-term holdings)

Tax Year

1 Jan – 31 Dec

Currency

Euro (EUR) — Eurozone member since 2014

Quick Country Comparison

— at €40,000

Country	Take-home	Eff. Rate	vs Latvia
Latvia	€26,600	~33.5%	—
Estonia	€29,600	~26%	+€3,000
Lithuania	€27,200	~32%	+€600
Germany	€25,600	~36%	−€1,000

Latvia: 20–31% progressive + 10.5% employee social. Estonia: 22% flat + 2% employee. Lithuania: 20%/32% + 19.5% social. Germany: progressive 14–45% + ~20% social. Illustrative — not tax advice.

Want your exact figures? Use the full Latvia calculator →

Comparison Guides

See how Latvia compares to its Baltic neighbours Estonia and Lithuania.

Estonia vs Latvia Baltic flat tax systems compared

Latvia vs Lithuania Baltic neighbours head-to-head

Salary Guides

Latvia uses the Euro (EUR) since joining the Eurozone in 2014. The progressive income tax system has three brackets (20%, 23%, 31%), and the non-taxable minimum gradually reduces to zero for higher earners. Employee social contributions at ~10.5% are lower than many EU peers. Riga is Latvia's main economic hub, with a growing tech and startup scene.

Moving from Latvia

Latvia is an EU and Schengen member — EU citizens have full freedom of movement. Non-EU citizens can apply for a Temporary Residence Permit based on employment, study, or investment. Latvia's Digital Nomad Visa is available for non-EU citizens with proven remote income. Riga offers excellent quality of life at a 40–50% lower cost than Western European capitals, with a growing English-speaking tech community.

Last Updated: June 2026 · Daniel · CountryTaxCalc