Tax calculators for Latvia in 2026: take-home pay after personal income tax and social contributions, plus VAT. Payroll income tax is 25.5%, the employee social contribution is 10.5%, and the standard VAT rate is 21%. Every rate comes from VID and was verified on 13 August 2026.
The two numbers people in Latvia look up most often are take-home pay and VAT. Both have a calculator here, and in neither is the rate hard-coded as a constant — it comes from a dated rates file, and the page shows which VID page it was checked against.
One thing worth knowing before you calculate: 25.5% is the payroll rate an employer withholds each month, and it applies not to gross pay but to what is left after the social contribution and the tax-free allowance have been taken off. So “25.5% of gross” is never the right answer, and the calculator does not compute it that way.
Annual income above €105,300 moves into a higher rate, and that is settled by the annual declaration rather than by the monthly payroll calculation. The salary calculator computes the monthly withholding — the figure that actually appears on a payslip.
If you want your take-home figure, use the salary calculator — it runs gross to net and net to gross. If you are selling goods or a service, use the VAT calculator at 21%, 12% or 5%. Both draw their rates from VID, verified on 13 August 2026.
Because the assumptions differ: whether the tax-free allowance applies, whether there are dependants, whether the payroll book is filed with this employer. Two calculators using the same VID rates disagree when one silently assumes a relief the other does not.
Rates usually change once a year on 1 January, though individual amendments also take effect mid-year. On this site the rates are not hard-coded: they come from a dated file, and every page shows which VID page a figure came from and when it was checked.
No. They are informative and show the monthly withholding, not the annual outcome. An annual return is shaped by deductible expenses, multiple income sources and the progressive rate above the yearly threshold, so for a precise figure ask VID or an accountant.