IIN (personal income tax)
In Latvian: IIN (iedzīvotāju ienākuma nodoklis)
IIN (iedzīvotāju ienākuma nodoklis) is the personal income tax that individuals in Latvia pay on salary, business, capital and other income. In 2026 the main rate is 25.5% on annual income up to EUR 105,300 and 33% on the part above it.
On salary, the employer withholds wage tax every month at 25.5% of what is left after the employee's share of VSAOI, the non-taxable minimum and any reliefs. The non-taxable minimum is EUR 550 a month in 2026 and applies only at the workplace that holds the employee's payroll tax book.
The 33% rate is applied in the annual income tax return when annual income exceeds EUR 105,300. Since 2025 an additional 3% applies to total income above EUR 200,000 a year. Income from capital, including capital gains, is taxed at 25.5%.
A self-employed person works out IIN on revenue minus business expenses and pays it after filing the annual return. Advance payments have not been required since 2023.
Example
Anna earns a gross salary of EUR 1,500 a month and has given her payroll tax book to her employer. Her employee VSAOI is EUR 157.50, so IIN is charged on 1,500 − 157.50 − 550 = EUR 792.50. IIN is 792.50 × 25.5% = EUR 202.09, and her net pay is EUR 1,140.41.
Legal basis
- Law on Personal Income Tax, Section 15 likumi.lv
- Law on Personal Income Tax, Section 15.1 likumi.lv
- Law on Personal Income Tax, Section 12 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.