Take-home pay after tax, with the full working and a VID source for every rate.
In 2026 the Latvian tax-free allowance is €550 per month, or €6,600 per year. It is a flat amount applied regardless of income level, unlike earlier years when it tapered away as income rose. For pensioners the allowance is €1,000 per month. Source: the State Revenue Service (VID).
The payroll tax an employer withholds each month is 25.5% of taxable income in 2026. The progressive 33% rate applies only to the part of annual income above €105,300 and is settled in the annual declaration, not in the monthly payslip. A further 3% applies to annual income above €200,000. Source: the State Revenue Service (VID).
In 2026 Latvian mandatory state social insurance contributions total 34.09%: 10.5% is withheld from the employee's pay and 23.59% is paid by the employer on top of the salary. For employees of state pension age the rates are lower — 9.25% employee and 20.77% employer. Source: the State Revenue Service (VID).
If the tax book is not filed with the employer, the employer applies neither the tax-free allowance nor dependant relief, and withholds tax from the first euro. Take-home pay is lower as a result, but the unapplied allowance can be reclaimed the following year by filing an annual income declaration. Source: the State Revenue Service (VID).