Country Hub · Latvia · 2026

Latvia

25.5% (up to €105,300); 33% above · Employee social 10.5% · Eurozone (EUR) since 2014 · Riga startup hub

25.5% (up to €105,300/year); 33% (above €105,300); additional 3% on total annual income above €200,000

Income Tax Rates

€550/month (€6,600/year) in 2026 for a resident employee with a tax booklet at the employer (the body text of the law says €570; the 2026 transitional provision sets €550)

Non-Taxable Minimum

10.5% (state social insurance, VSAOI); above €105,300 a solidarity tax applies, with the employee bearing 10.5% of the excess

Employee Social Contributions

Calculate Your Latvia Tax

Latvia Tax Facts

— 2026

Income Tax Rates

25.5% (up to €105,300/year); 33% (above €105,300); additional 3% on total annual income above €200,000

Non-Taxable Minimum

€550/month (€6,600/year) in 2026 for a resident employee with a tax booklet at the employer (the body text of the law says €570; the 2026 transitional provision sets €550)

Employee Social Contributions

10.5% (state social insurance, VSAOI); above €105,300 a solidarity tax applies, with the employee bearing 10.5% of the excess

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	€28,354	~29.1%	—
Estonia	€31,925	~20.2%	+€3,571
Lithuania	€24,200	~39.5%	−€4,154
Germany	€26,894	~32.8%	−€1,460

Latvia: 25.5%/33% income tax + 10.5% employee social. Estonia: 22% flat + 3.6% employee. Lithuania: 20% + 19.5% social. Germany: progressive 14–45% + ~22% social. Single employee, wage income, no dependants, 2026 country calculators. 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. Wage income is taxed at 25.5% up to €105,300 a year and 33% above, with a 3% supplementary rate on total annual income over €200,000, and a flat non-taxable minimum of €550/month in 2026. Employee social contributions of 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: October 2026 · Daniel · CountryTaxCalc