Latvia Salary Calculator: Gross to Net, and the Income Tax Behind It

Enter a gross monthly salary and the calculator below gives net pay and what the employer pays, at the 2026 rates listed in the ledger at the end of this page. Its second tab does the year instead, which is a different calculation rather than twelve of the first: the band above the contribution ceiling, the additional rate, and deductible spending exist only at that scale. It is also on its own page, in the calculators. Under it are the rules the arithmetic rests on, for the employee's side of the payslip that the cost of hiring guide leaves out. If you are deciding what gross figure to put in, the tech pay guide has what the official statistics show Latvian tech roles earning.

The calculator models one job in Latvia: the monthly tab is payroll withholding, the yearly tab is what that year owes once it is settled. Neither replaces a payslip or a filed declaration, and neither is advice. Capital income, dividends, and self-employment are taxed under their own rules and are not in it. The rates change each January, and this page is checked against them when they do.

How Do You Calculate Net Salary in Latvia?

Take off the employee's social contributions of 10.5%, then the monthly non-taxable minimum of EUR 550 and any allowances, and charge income tax at 25.5% on what is left. The employer pays a further 23.59% on top of gross, so the total cost is gross times 1.2359.

The minimum and every allowance are applied only where the employee's tax book, the algas nodokļa grāmatiņa, is filed. A second job without it is taxed after social contributions with no minimum at all. The cost of hiring guide works through the whole employer-side stack, and what else a hire costs.

What Is the Non-Taxable Minimum in Latvia?

EUR 550 a month in 2026, up from EUR 510 in 2025, and the same whatever someone earns, unless they receive a pension. Article 12 of the Personal Income Tax Act sets EUR 570, but a transitional provision holds 2026 at the lower figure. It is applied each month where the tax book is filed.

The State Revenue Service puts the step up to the article's own figure in 2027. A minimum that went unused during the year, because someone earned less in some months than in others, is refunded after the year without a declaration.

What Changed in Latvia's 2025 Income Tax Reform?

From 2025 the non-taxable minimum stopped depending on income and became one fixed amount, EUR 510 a month that year. Income tax moved to 25.5% on annual income up to EUR 105,300 and 33% above it, and an additional 3% now applies to total annual income above EUR 200,000.

LV portāls summarised the change when it was made. The same year, the non-taxable minimum for people receiving a pension rose to EUR 1,000 a month.

How Much Is the Dependant Allowance in Latvia?

EUR 250 a month for each dependant, deducted before income tax where the tax book is filed. A dependant is a child under 18, or under 24 while still in education, or another person the law lists, with no pension or taxable income of their own above the allowance. Only one of the people supporting them can claim it.

The employee registers dependants with the State Revenue Service. An allowance that went unused during the year is refunded after it without a declaration, provided the dependant was registered.

What Tax Relief Do People With Disabilities Get in Latvia?

An additional allowance of EUR 1,848 a year for disability group I or II, and EUR 1,440 for group III, set by Cabinet Regulation No. 138. Politically repressed persons and members of the national resistance movement get EUR 1,848 a year. The calculator spreads each allowance evenly across the months.

Like the minimum, the additional relief is applied through the tax book, and relief that payroll did not use is refunded after the year.

How Is a Working Pensioner's Salary Taxed in Latvia?

A salary paid to someone who has reached state pension age, or receives an old-age pension, carries social contributions of 30.02% instead of 34.09%, split 20.77% for the employer and 9.25% for the employee. A pensioner's minimum of EUR 1,000 a month replaces the general one, and the pension payer applies it.

Where the tax book is filed with the employer instead, the pensioner's minimum is applied in equal halves by the pension payer and the employer, so the salary carries half of it. Someone who has reached pension age but has no pension granted keeps the general minimum. The calculator covers all three cases, and a minimum left unused comes back after the year.

What Happens to Tax on a High Salary in Latvia?

Above EUR 105,300 a year, social contributions give way to solidarity tax of 25%, and income tax rises to 33%. Payroll still withholds at the ordinary rates during the year: solidarity tax at the same rates as social contributions, with the overpayment refunded to the employer, and the higher income tax settled in the annual declaration.

The exception is an employee covered by another country's social insurance system, whose employer withholds 33% each month on salary above one twelfth of the ceiling. This is why the calculator's monthly tab stops at one twelfth of EUR 105,300 rather than give a figure the end of the year would change, and offers the yearly tab instead, which settles all three.

Do You Have to File an Annual Income Tax Declaration in Latvia?

Only in some cases. An employee whose tax was fully withheld at work need not file, but a declaration is required if income tax was not fully withheld during the year, or the person who received the income is responsible for paying it. That includes landlords, the self-employed, and people with foreign income.

It is also required from anyone owing the higher rate on income above EUR 105,300, or with non-taxable income over EUR 10,000 in a year. The declaration for a year is filed between 1 March and 1 June of the following year, or between 1 April and 1 July where income taxed at the ordinary rates passed the contribution ceiling. The State Revenue Service's list also covers dividends, rental income on which no tax was withheld, and gifts from individuals above EUR 1,425.

Filing is also how an employee claims money back, though not always: where an overpayment comes from the non-taxable minimum, the pensioner's minimum, the additional relief, the progressive rate or an unused dependant allowance, the State Revenue Service refunds it without being asked.

What Expenses Can You Deduct From Income Tax in Latvia?

Education and professional training, medical treatment and health insurance premiums for yourself and your family, and donations to public benefit organisations. Together they are capped at 50% of taxable income and at EUR 600 a year, a cap applied per family member for education and medical costs, and they are claimed in a voluntary annual declaration.

Contributions to private pension funds and some life insurance premiums are deductible too, under limits of their own set in article 10 of the Personal Income Tax Act.

How Are Non-Residents Taxed on a Latvian Salary?

A non-resident is taxed on a Latvian salary without the non-taxable minimum, unless they are resident in another EU or EEA country and earned more than 75% of their total income in Latvia that year. A person becomes resident when your declared place of residence is in Latvia, or by staying 183 days or more in any 12-month period.

In a year split between two countries, which rules apply depends on when that test is met and on the treaty between the two countries, so it is worth settling before the first payslip. The relocation guide covers when residence begins. To see pay without the minimum, choose no tax book in the calculator.

Frequently Asked Questions

What Is the Income Tax Rate in Latvia in 2026?

25.5% on annual income up to EUR 105,300 and 33% on income above it, with an additional 3% on total annual income above EUR 200,000. Payroll withholds 25.5% each month after the non-taxable minimum and allowances.

How Much Is the Non-Taxable Minimum in Latvia in 2026?

EUR 550 a month, applied where the employee's tax book is filed. It was EUR 510 a month in 2025.

How Much Does an Employer in Latvia Pay on Top of Salary?

23.59% of gross salary in social contributions, or 20.77% for an employee of state pension age, so the total cost of a standard employee is gross times 1.2359.

Does a Second Job Get the Non-Taxable Minimum in Latvia?

No. The monthly non-taxable minimum and the allowances are applied only where the employee's tax book is filed, so pay from a second job is taxed at 25.5% after social contributions, and an unused minimum is refunded after the year.

Do Non-Residents Get the Non-Taxable Minimum in Latvia?

Not usually. A non-resident gets no non-taxable minimum unless they are resident in another EU or EEA country and earned more than 75% of their total income in Latvia in the year.

When Is the Annual Income Declaration Due in Latvia?

It is filed between 1 March and 1 June of the following year, or between 1 April and 1 July where income taxed at the ordinary rates passed EUR 105,300.

Sources

• Par iedzīvotāju ienākuma nodokli, the Personal Income Tax Act. Article 10 has the deductible expenses and their cap, article 12 the non-taxable minimum and the rule for non-residents, article 13 dependants, article 15 the rates, article 17 the declaration window, article 20.1 automatic refunds, and transitional provision 197 the minimum for 2025 and 2026.
• Par valsts sociālo apdrošināšanu, for the contribution rates and the annual ceiling, and Cabinet Regulation No. 786, point 3, for the rates at state pension age.
• Solidaritātes nodokļa likums, for the rate above the ceiling and how it is withheld.
• Cabinet Regulation No. 138, for the additional relief.
• Par nodokļiem un nodevām, article 14, for tax residence.
• The State Revenue Service, for who must file a declaration and the pensioner's minimum, and LV portāls on the 2025 reform.

This page does arithmetic with published rates. It is not a payslip, and a tax question about your own income is one for the State Revenue Service or an adviser.