Latvia Income Tax Calculator 2026
Calculate your exact net salary in Latvia after Iedzīvotāju ienākuma nodoklis (IIN) and social security. All 3 tax brackets. Updated Q1 2026.
Your employer pays an additional €11,795 (23.6% of gross). Total employment cost = €61,795.
How income tax works in Latvia
Income tax in Latvia is administered by the Valsts ieņēmumu dienests (VID) under Iedzīvotāju ienākuma nodoklis (IIN). Social contributions: employee 10.5%, employer 23.59%. Brackets in EUR.
Latvia uses a progressive schedule of 3 brackets: each slice of income is taxed at the rate of the band it falls in — not your highest rate applied to the whole salary. Social security (10.5% of gross) is deducted first; income tax is then applied to the remainder band-by-band.
Latvia pays salaries across 12 monthly instalments.
Key tax dates in Latvia
| Event | Date / Note |
|---|---|
| Tax year start | 1 January |
| Tax year end | 31 December |
| Filing deadline | 1 June |
| Withholding regime | Iedzīvotāju ienākuma nodoklis (IIN) |
Deductions and allowances
- ·Non-taxable minimum EUR 500/month (income-dependent)
- ·Dependant deductions
- ·Education/medical expenses
- ·Donations
- ·Pension third-pillar
Social contributions: employee 10.5%, employer 23.59%. Brackets in EUR.
Special tax regimes
No special expat regime. Flat 25% tax option for self-employed micro-enterprises.
Read full guide →All 3 brackets for 2026
| # | Income Range (€) | Marginal | Effective at Top |
|---|---|---|---|
| 01 | €0 — €20,004 | 20% | 28.4% |
| 02 | €20,004 — €78,100 | 23% | 30.3% |
| 03 | €78,100 — ∞ | 31% | — |
Source · Valsts ieņēmumu dienests (VID) · Data updated Q1 2026
Frequently asked
What is the income tax rate in Latvia?+
Latvia applies progressive Iedzīvotāju ienākuma nodoklis (IIN) rates from 20.0% on the lowest band up to 31.0% on the highest, across 3 brackets in 2026.
How much social security do you pay in Latvia?+
Employees pay 10.5% of gross salary as social security. Social contributions: employee 10.5%, employer 23.59%. Brackets in EUR.
What is the Iedzīvotāju ienākuma nodoklis (IIN) personal allowance in Latvia?+
The main allowances are: Non-taxable minimum EUR 500/month (income-dependent); Dependant deductions. See §03 for the full list.
When do you file taxes in Latvia?+
The filing deadline in Latvia is 1 June. Tax year runs 1 January to 31 December.
How much take-home pay on €18,000 gross in Latvia?+
On a €18,000 gross salary the effective rate is 28.4%, leaving approximately €12,888 net per year — about €1,074 per month across 12 payments. (For reference: €50,000 gross nets €35,058.)
Does Latvia have any special tax regimes for expats?+
No special expat regime. Flat 25% tax option for self-employed micro-enterprises.
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