Income tax in Latvia (2026)

In 2026, income tax in Latvia runs from 25.5% to 40.6%. On a €60,000 salary you take home €41,690 a year, €3,474 a month.

Income tax rates

Top rate
40.6%
Lowest rate
25.5%
Tax-free allowance
None
VAT
21%
Capital gains
25.5%
The 2026 bands, in Euro
Income-tax bands of Latvia, 2026, in Euro
Taxable income (after allowance)Rate
€0 to €105,30025.5%
over €105,30033%

These are the national bands. The top rate of 40.6% also counts surcharges and regional or local income taxes.

Take-home pay by salary

Compare with other countries

Cost of living in Latvia

Frequently asked questions

What are the income tax rates in Latvia?

Income tax in Latvia runs from 25.5% to 40.6%, in 2 bands.

Is there a tax-free allowance in Latvia?

No — Latvia has no general tax-free allowance.

What is the take-home pay on €60,000 in Latvia?

On €60,000 in Latvia you take home €41,690 a year — €3,474 a month.

2026 rules checked against taxsummaries.pwc.com. Single person, employee, no other income. Not tax advice. Change the details

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