From Gross to Net in Three Steps
- Social insurance (VSAOI): 10.5% of gross pay, up to a yearly maximum base of €105,300.
- Non-taxable minimum: €550 a month in 2026, €6,600 a year, the same for every salary level.
- Personal income tax (IIN): 25.5% on what is left, rising to 33% on annual taxable income above €105,300.
Social insurance is taken off before tax, so it lowers the IIN as well. The employer adds 23.59% social insurance on top of your gross.
Latvian Income Tax Rates for 2026
| Annual income | IIN rate |
|---|---|
| taxable income up to €105,300 | 25.5% |
| taxable income above €105,300 | 33% |
| total income above €200,000 | extra 3% |
The non-taxable minimum rose from €510 a month in 2025 to €550 in 2026. Since 2025 it no longer depends on your income.
Worked Example on 1,800 Euros a Month
- Yearly gross: €21,600
- Social insurance: 10.5% = €2,268
- Taxable income: €21,600 − €2,268 − €6,600 = €12,732
- Income tax: €12,732 × 25.5% = €3,246.66
- Net pay: €16,085.34 a year, €1,340.45 a month
So 25.5% of gross is withheld. Monthly, that is €189 of social insurance and €270.56 of income tax.
Latvian Take Home Pay at Six Salaries
| Gross a year | Gross a month | VSAOI | IIN | Net a month |
|---|---|---|---|---|
| €12,000 | €1,000 | €1,260 | €1,055.70 | €807.03 |
| €16,800 | €1,400 | €1,764 | €2,151.18 | €1,073.73 |
| €21,600 | €1,800 | €2,268 | €3,246.66 | €1,340.45 |
| €30,000 | €2,500 | €3,150 | €5,163.75 | €1,807.19 |
| €48,000 | €4,000 | €5,040 | €9,271.80 | €2,807.35 |
| €72,000 | €6,000 | €7,560 | €14,749.20 | €4,140.90 |
On a high salary of €150,000 the 33% band and the capped social insurance take net pay to €103,167.65 a year.
Tax Booklet, Dependants and Second Jobs
The non-taxable minimum and dependant relief are applied only by the employer that holds your electronic tax booklet (algas nodokļa grāmatiņa). At a second job the full 25.5% applies from the first euro. Relief for each dependant lowers taxable income further; it is not in the calculator, so your pay will be a little higher if you claim it.
Taxable Income and Common Exemptions
- Taxed: wages, overtime, bonuses, holiday pay and most benefits in kind.
- Reducing the tax: some personal costs claimed on your annual income declaration within the legal limits.
- Not taxed: business trip allowances within the official norms.
Employer Cost on Top of Gross Pay
Your gross salary is not what the job costs the company. The employer adds its own social insurance of 23.59%, so a €1,800 monthly salary costs about €2,224.62 a month before the small risk duty. Comparing offers on gross pay alone is fair, since that employer share never shows on your payslip. Contracts in Latvia usually state gross monthly pay, so ask for the net figure in writing if that is what you plan around.
The combined social insurance rate is 34.09%. Of the employee part, most goes to the state pension; the rest funds sickness, maternity, unemployment and injury cover.
Monthly Pay, Bonuses and Holiday Pay
Latvian payroll runs monthly: €550 of the non-taxable minimum is used each month, and 25.5% applies to the rest. A bonus month uses the same minimum, so the bonus itself is taxed at 25.5% after 10.5% social insurance. Holiday pay follows the same rules.
Income above €105,300 a year meets the 33% rate. Whatever monthly payroll withholds, the annual income declaration settles the final figure, and it is also where you claim refunds for eligible personal costs.
Someone moving from Riga to Tallinn or Vilnius will notice that Latvia taxes the middle of the pay scale more heavily than its neighbours, because the 25.5% rate starts right after a small fixed allowance. The Estonia Gross to Net Calculator shows the same salary under the Estonian flat rate.
Assumptions and Sources for Latvia
- Resident employee for all of 2026, one employer holding the tax booklet, no dependants.
- Social insurance on the general rate for employees covered by all insurance types.
- The 25.5% rate is applied to annual taxable income; payroll works per month but the year adds up the same for a steady salary.
Sources: VID pages on personal income tax and personal income tax rates, and the law On State Social Insurance. Rates for 2026. Compare with the Estonia Gross to Net Calculator.
Frequently Asked Questions
How much is 1,800 euros gross after tax in Latvia?
€1,340.45 a month in 2026, with the non-taxable minimum applied.
What is the non-taxable minimum for 2026?
€550 a month or €6,600 a year, for every income level.
What is the employee social insurance rate?
10.5% of gross pay, up to €105,300 a year.
When does the 33% rate apply?
On annual taxable income above €105,300.
Is there an extra tax for very high earners?
Yes, an additional 3% on annual income above €200,000.
Does the calculator include dependant relief?
No. Each dependant claimed through your tax booklet lowers the income tax a little.
How much does my employer pay on top?
Employer social insurance of 23.59% of your gross pay, plus a small business risk duty.