In Latvia in 2026, employers withhold 10.5% social contributions from gross pay, then 25.5% income tax on the taxable remainder, applying a EUR 550 monthly tax-free allowance and EUR 250 per dependant (VID, verified 13 August 2026).
Take-home pay after tax, with the full working and a VID source for every rate.
The income tax an employer withholds from pay each month in 2026 is 25.5% (VID, verified 13 August 2026). Employee state social insurance contributions are 10.5%, and the employer pays a further 23.59% on top of the gross salary (VID, verified 13 August 2026).
The tax-free allowance in 2026 is EUR 550 per month, relief per dependant is EUR 250 per month, and the pensioner allowance is EUR 1,000 per month (VID, verified 13 August 2026). An employer applies the allowance and the dependant relief only when the employee has filed the payroll tax book.
For employees of state pension age the contribution rates are lower: 9.25% employee and 20.77% employer. Social contributions have an annual ceiling of EUR 105,300. The minimum monthly wage in 2026 is EUR 780 (VID, verified 13 August 2026).
The calculation runs in three steps. Employee social contributions of 10.5% come off the gross first. The EUR 550 tax-free allowance and EUR 250 per dependant are then deducted from what remains. Income tax of 25.5% applies to the remainder, and what is left after both deductions is take-home pay.
Example: gross EUR 1,750 per month, no dependants, tax book filed, employee not of pension age. Social contributions of 10.5% are EUR 183.75. Taxable income: 1,750 − 183.75 − 550 = EUR 1,016.25. Income tax of 25.5% on that is EUR 259.14. Net pay is EUR 1,307.11 per month. Rates: VID, verified 13 August 2026.
Total employer cost is higher than the gross salary, because the employer's 23.59% social contributions are paid on top of it rather than withheld from the employee's pay.
Annual income in 2026 carries two rates: 25.5% on income up to EUR 105,300 a year and 33% on the part above that threshold (VID, verified 13 August 2026). Monthly payroll withholds 25.5% only, so the 33% band never appears on a payslip.
The difference on the 33% portion is calculated and settled in the annual income declaration. Income above EUR 200,000 a year also carries a 3% solidarity surcharge (VID, verified 13 August 2026).
This calculator shows the monthly payroll figure at 25.5%, the same way an employer computes it.
Every rate on this page is taken from the VID pages on income tax, the tax-free allowance and mandatory state social insurance contributions. The verification date, 13 August 2026, is stated next to each figure.
If VID changes a rate, both the figure and the verification date are updated. Figures VID has not published are not stated here.
The calculator computes results from published rates and does not give tax advice. For questions about an individual tax position, contact VID.
In 2026 a Latvian employer withholds 25.5% income tax and 10.5% mandatory state social insurance contributions from pay. Before tax is calculated, the EUR 550 monthly allowance and EUR 250 per dependant are deducted, provided the payroll tax book has been filed. Source: VID, verified 13 August 2026.
Subtract 10.5% social contributions from gross, then the EUR 550 allowance and EUR 250 per dependant, and apply 25.5% tax to what remains. A 2026 example: gross EUR 1,750, no dependants, tax book filed — contributions EUR 183.75, taxable income EUR 1,016.25, tax EUR 259.14, net EUR 1,307.11 per month. Rates: VID, verified 13 August 2026.
In 2026 the Latvian tax-free allowance is EUR 550 per month. For pensioners it is EUR 1,000 per month. An employer applies it in monthly payroll only if the employee has filed the payroll tax book; without it, tax is withheld from the first euro. Source: VID, verified 13 August 2026.
In 2026 the Latvian relief per dependant is EUR 250 per month. It is deducted from taxable income on top of the EUR 550 monthly tax-free allowance, and an employer applies it only when the dependants are registered in the payroll tax book. Source: VID, verified 13 August 2026.
No. In 2026 monthly payroll withholds 25.5%. The 33% rate applies only to the part of annual income above EUR 105,300 and is settled in the annual income declaration, not on a payslip. Income above EUR 200,000 a year carries a further 3%. Source: VID, verified 13 August 2026.
In 2026, 10.5% mandatory state social insurance contributions are withheld from the employee's pay and the employer pays 23.59% on top of the salary. For employees of pension age the rates are 9.25% employee and 20.77% employer. Contributions have an annual ceiling of EUR 105,300. Source: VID, verified 13 August 2026.
The minimum monthly wage in Latvia in 2026 is EUR 780 gross. The same deductions apply as to any other salary: 10.5% social contributions and 25.5% income tax after the EUR 550 tax-free allowance. The net amount can be worked out with the calculator on this page. Source: VID, verified 13 August 2026.