Solidarity tax
In Latvian: Solidaritātes nodoklis
Solidarity tax (solidaritātes nodoklis) is a 25% tax on income above the VSAOI contribution cap of EUR 105,300 a year. It is paid by employers, employees and self-employed people whose annual income exceeds that amount.
During the year the ordinary VSAOI rate keeps being applied to income above EUR 105,300. After the year ends, VID refunds the difference between what was paid and the 25% rate by 1 September of the following year; where the rate is split between employee and employer, the refund goes to the employer.
The stated aim of the law is to reduce the regressivity of labour taxes for higher earners and to fund social protection needs, including health care.
Solidarity tax still applies in 2026. Do not confuse it with the additional 3% personal income tax charged since 2025 on total annual income above EUR 200,000.
Example
A consultant earns a gross salary of EUR 120,000 in 2026. On the EUR 14,700 above the EUR 105,300 cap, 34.09% VSAOI is withheld during the year, EUR 5,011.23. Solidarity tax is 14,700 × 25% = EUR 3,675, so the following year VID refunds EUR 1,336.23 to the employer.
Legal basis
- Solidarity Tax Law, Section 6.1 likumi.lv
- Solidarity Tax Law, Section 6.2 likumi.lv
- Law on State Social Insurance, Section 14 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.