Latvian tax rates 2026

In 2026 Latvia charges VAT (PVN) at a standard rate of 21%, with reduced rates of 12% and 5%, and a VAT registration threshold of EUR 50,000 per calendar year. Personal income tax (IIN) is 25.5% on annual income up to EUR 105,300 and 33% on income above it, with a non-taxable minimum of EUR 550 a month. Social security contributions (VSAOI) total 34.09% (23.59% paid by the employer, 10.50% by the employee), corporate income tax (UIN) is 20% of distributed profit, and the minimum monthly wage is EUR 780.

Updated 25 September 2026 Every rate links to its section of law

VAT (PVN)

Item	Value	Period	Source
Standard VAT (PVN) rate in Latvia, 2026 Applies to every taxable supply of goods or services that the law does not place at a reduced or 0% rate. Explained: Standard VAT rate (21%)	21%	2026	Value Added Tax Law, Section 41 likumi.lv
Reduced VAT rate of 12% in Latvia, 2026 For medicines and medical devices, infant food, scheduled domestic passenger transport, accommodation in tourist lodgings, firewood and heat for households, and the fresh fruit, berries and vegetables listed in Annex 1 of the VAT Law. Explained: Reduced VAT rate (12% and 5%)	12%	2026	Value Added Tax Law, Section 42 likumi.lv
VAT of 12% on bread, milk, poultry meat and eggs in Latvia A temporary reduced rate for the products listed in Annex 2 of the VAT Law; after 30 June 2027 they return to 21% unless the law is amended. Explained: Reduced VAT rate (12% and 5%)	12%	1 July 2026 – 30 June 2027	Value Added Tax Law, Transitional Provisions, Paragraph 48 likumi.lv
Reduced VAT rate of 5% in Latvia, 2026 For books and the press, printed or electronic, where the publication meets the language and content conditions of Section 42 of the VAT Law. Explained: Reduced VAT rate (12% and 5%)	5%	2026	Value Added Tax Law, Section 42 likumi.lv
VAT rate of 0% on exports and supplies of goods to other EU countries For goods exported outside the EU and goods supplied to a VAT-registered customer in another EU member state, where the conditions of Section 43 of the VAT Law are met. Explained: Zero rate (0% VAT)	0%	2026	Value Added Tax Law, Section 43 likumi.lv
VAT registration threshold in Latvia, 2026 The total value excluding VAT of goods and services supplied in Latvia during a calendar year; above it a business must register for VAT. Explained: VAT registration threshold	EUR 50,000 a year	2026	Value Added Tax Law, Section 59 likumi.lv

Personal income tax (IIN)

Item	Value	Period	Source
Personal income tax (IIN) rate in Latvia, 2026, on income up to EUR 105,300 a year On wages, business income and other income for the part of the year up to the maximum social insurance base; on wages it is withheld monthly. Explained: IIN (personal income tax)	25.5%	2026	Law On Personal Income Tax, Section 15 likumi.lv
Personal income tax (IIN) rate in Latvia, 2026, on income above EUR 105,300 a year Applies only to the part of annual income above EUR 105,300. Explained: IIN (personal income tax)	33%	2026	Law On Personal Income Tax, Section 15 likumi.lv
Additional personal income tax in Latvia on income above EUR 200,000 a year On top of the normal rate, on the part of total annual income, capital income included, above EUR 200,000; paid with the annual return. Explained: IIN (personal income tax)	3%	2026	Law On Personal Income Tax, Section 15.1 likumi.lv
Personal income tax rate on capital income and capital gains in Latvia, 2026 On interest, capital gains and other capital income; the non-taxable minimum does not apply to it. Explained: Capital gains	25.5%	2026	Law On Personal Income Tax, Section 15 likumi.lv
Non-taxable minimum in Latvia, 2026 The same for every taxpayer; on wages it is applied by the employer holding the payroll tax book. Explained: Non-taxable minimum	EUR 550 a month	2026	Law On Personal Income Tax, Transitional Provisions, Paragraph 197 likumi.lv
Non-taxable minimum for pensioners in Latvia, 2026 Applied to pension income; it equals EUR 1,000 a month. Explained: Non-taxable minimum	EUR 12,000 a year	2026	Law On Personal Income Tax, Section 12 likumi.lv
Income tax relief per dependant in Latvia, 2026 For each dependant, such as a minor child; one of the providers claims it. Explained: Dependant relief	EUR 250 a month	2026	Law On Personal Income Tax, Section 13 likumi.lv
Tax withheld from royalties in Latvia, 2026 The payer withholds 25% of a royalty when the author has not registered as self-employed; this regime is available until 31 December 2027. Explained: Royalty (autoratlīdzība)	25%	2026	Law On Personal Income Tax, Transitional Provisions, Paragraph 164 likumi.lv

Social security (VSAOI)

Item	Value	Period	Source
Total social security contribution (VSAOI) rate for an employee in Latvia, 2026 For an employee insured for every type of social insurance; the employer pays 23.59% and the employee 10.50%. Explained: VSAOI (social security contributions)	34.09%	2026	Law On State Social Insurance, Section 18 likumi.lv
Employer social security contribution rate in Latvia, 2026 Paid by the employer on top of the gross salary; it is not deducted from the employee. Explained: VSAOI (social security contributions)	23.59%	2026	Law On State Social Insurance, Section 18 likumi.lv
Employee social security contribution rate in Latvia, 2026 The employer deducts it from the employee’s gross salary. Explained: Gross salary	10.50%	2026	Law On State Social Insurance, Section 18 likumi.lv
Maximum social security contribution base in Latvia, 2026 Income above this amount is subject to the solidarity tax instead of VSAOI; the same amount is the threshold for the 33% income tax rate. Explained: VSAOI (social security contributions)	EUR 105,300 a year	2026	Law On State Social Insurance, Section 14 likumi.lv
Solidarity tax rate in Latvia, 2026 On income above EUR 105,300 a year; the VSAOI rate is withheld during the year and VID refunds the difference by 1 September of the next year. Explained: Solidarity tax	25%	2026	Solidarity Tax Law, Section 6.1 likumi.lv
Self-employed pension contribution in Latvia, 2026, when income is below the minimum wage When monthly income is below EUR 780, the self-employed person pays 10% of that income to pension insurance once a quarter. Explained: Self-employed person (pašnodarbinātais)	10%	2026	Law On State Social Insurance, Section 14.1 likumi.lv
Minimum social security base for the self-employed in Latvia, 2026 When income reaches the minimum wage, full contributions are paid on a self-chosen base of at least EUR 780, plus 10% to pension insurance on the difference up to actual income. Explained: Self-employed person (pašnodarbinātais)	EUR 780 a month	2026	Law On State Social Insurance, Section 14.1 likumi.lv

Corporate income tax and dividends

Item	Value	Period	Source
Corporate income tax (UIN) rate in Latvia, 2026 On distributed and deemed distributed profit; the taxable base is the payout divided by 0.8, so the tax equals 25% of the net dividend. Explained: UIN (corporate income tax)	20%	2026	Enterprise Income Tax Law, Section 3 likumi.lv
Alternative corporate income tax rate in Latvia, 2026, for companies owned only by individuals The company may choose a 15% rate on dividends, with the base calculated using a 0.85 coefficient; the shareholder then pays 6% income tax on those dividends. Explained: Dividends	15%	2026	Enterprise Income Tax Law, Section 4.2 likumi.lv
Personal income tax on dividends in Latvia, 2026, when the company has paid UIN Dividends paid out of profit on which UIN was paid at company level are exempt for the individual; the exception is dividends under the alternative 15% UIN rate. Explained: Dividends	0%	2026	Law On Personal Income Tax, Section 9 likumi.lv

Micro-enterprise tax (MUN)

Item	Value	Period	Source
Micro-enterprise tax (MUN) rate in Latvia, 2026 Covers the owner’s VSAOI and income tax; open to individual merchants, individual enterprises, farms and people registered with VID for economic activity. Explained: Microenterprise tax (MUN)	25% of turnover	2026	Micro-enterprise Tax Law, Section 6 likumi.lv
Turnover limit for micro-enterprise tax payers in Latvia, 2026 A micro-enterprise may not be VAT-registered, so its turnover cannot exceed the VAT registration threshold; once it must register for VAT, it loses the status from the next year. Explained: Micro-enterprise (mikrouzņēmums)	EUR 50,000 a year	2026	Micro-enterprise Tax Law, Section 4 likumi.lv

Minimum wage

Item	Value	Period	Source
Minimum monthly wage in Latvia, 2026 Gross pay for normal full-time hours in a month, set by the Cabinet of Ministers. Explained: Minimum monthly wage	EUR 780	2026	Ministry of Welfare: minimum wage lm.gov.lv

Changes already adopted from 2027

These changes are already written into laws in force. Rates changed by the 2027 budget laws appear here only once those laws are adopted.

1 January 2027

Non-taxable minimum in Latvia from 2027: from EUR 550 to EUR 570 a month

The main text of the law already sets EUR 570; the EUR 550 figure for 2026 comes from a transitional provision only.

Law On Personal Income Tax, Section 12 likumi.lv
1 July 2027

VAT on bread, milk, poultry meat and eggs after 30 June 2027: the temporary 12% rate ends and 21% applies again

The temporary rate runs from 1 July 2026 to 30 June 2027.

Value Added Tax Law, Transitional Provisions, Paragraph 48 likumi.lv
1 January 2028

The special tax regime for royalties after 2027: the option to receive royalties without registering as self-employed ends on 31 December 2027

Law On Personal Income Tax, Transitional Provisions, Paragraph 163 likumi.lv
1 January 2028

Structured e-invoices between Latvian businesses: an invoice to another business registered in Latvia must be issued as a structured electronic invoice

For invoices to public bodies this requirement has applied since 1 January 2025.

Accounting Law, Transitional Provisions, Paragraph 8 likumi.lv

Calculate with these rates

This table is for information. The laws and Cabinet regulations in their current text prevail; for a specific case, ask VID or an accountant.