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🇱🇻 Latvia Net Salary Calculator 2025
Latvia has a three-tier progressive income tax: 20% on income up to €20,004, 23% between €20,004 and €78,100, and 31% above €78,100. Employee social insurance contributions (VSAOI) are 10.5% of gross, capped at €78,100, the same threshold where the top income tax rate kicks in. VSAOI is deductible from the taxable income base. The non-taxable minimum is around €3,600 per year. Total effective deduction rates for typical Latvian employees range from 25% to 40% of gross. At €25,000 gross, a Latvian employee takes home around €18,600 after VSAOI and income tax. At €45,000, take-home is approximately €32,400 as the 23% bracket applies to most of the taxable income.
Latvia Income Tax Brackets
Brackets apply to taxable income after the €3,600 tax-free allowance.
| Income band | Rate |
|---|---|
| €0 – €20,004 | 20.00% |
| €20,004 – €78,100 | 23.00% |
| €78,100 and above | 31.00% |
Take-home pay examples
| Gross / year | Net / year | Net / month |
|---|---|---|
| €15,000 | €11,460 | €955 |
| €25,000 | €18,620 | €1,552 |
| €45,000 | €32,440 | €2,703 |
| €70,000 | €49,669 | €4,139 |
Employee figures only, standard deductions applied. Pension contributions, benefits in kind, and other personal factors are not included.
Data & assumptions
- Tax year
- 2026
- Last updated
- 2026-07-17
- Employment assumption
- Full-time employee, single filer
Figures are estimates based on standard deductions and do not account for pension contributions, benefits in kind, or individual circumstances. See our methodology for how these numbers are calculated.
Frequently Asked Questions
What is the VSAOI?
VSAOI (Valsts sociālās apdrošināšanas obligātās iemaksas) is Latvia's mandatory social insurance contribution. The employee pays 10.5% and the employer pays 23.59%. Together they fund the state pension, disability benefits, maternity and sickness pay, and unemployment insurance.
What is the non-taxable minimum?
Latvia's neapliekamais minimums is a non-taxable income threshold of approximately €3,600/year in 2025. It's been gradually increasing as part of tax reforms and is expected to rise further. The allowance reduces the income tax base but does not affect VSAOI, which applies to full gross.
Why is the top rate 31%?
Latvia introduced the 31% top bracket in 2018 as part of a tax reform that also raised the lower brackets' thresholds. The same €78,100 threshold is used for both the VSAOI cap and the 31% rate: a deliberate design that creates a natural discontinuity where SS stops but the top income tax rate starts.
What is a good salary in Latvia?
Riga is Latvia's economic hub and offers the highest salaries in the country; Daugavpils and other regional cities pay considerably less. A single person in Riga typically needs €1,200–2,000 net per month, which corresponds to roughly €18,000–32,000 gross. The national median gross salary is around €15,000–18,000 per year. IT and shared-service salaries in Riga are growing rapidly, reaching €25,000–50,000 for experienced professionals. Latvia's cost of living is among the lowest in the EU, though prices in Riga have risen significantly since 2020 as remote work drove demand for quality housing.
How does Latvian take-home compare to Estonia and Lithuania?
Latvia sits between Estonia and Lithuania in effective tax burden. Estonia's flat 22% income tax is simpler; Latvia's three-rate structure (20%/23%/31%) produces a similar result at lower incomes but becomes more expensive at higher ones. Lithuania's non-deductible 15.7% Sodra pushes its effective rate above Latvia's at most mid-range salaries. At €25,000 gross, a Latvian employee keeps around €18,600 (74%), broadly similar to Estonia. Above €35,000, Latvian take-home pulls ahead of Lithuania because Latvia's VSAOI (10.5%) is deductible from the income tax base while Lithuania's 15.7% Sodra is not.
What is the solidarity tax and who pays it in Latvia?
Latvia applies a 31% income tax rate above €78,100 of annual gross income, the same threshold where the VSAOI social contributions are capped. The design is deliberate: once you earn above €78,100, the 10.5% VSAOI stops, but the 31% income tax rate applies on the excess. The net marginal effect just above the cap is actually slightly better: 23% + 10.5% = 33.5% below the threshold, versus 31% + 0% = 31% above it. Very high earners see progressively heavier income tax as the 31% continues without any SS offset.