Calculate your Latvian take-home pay for 2026 under the new tax reform: 25.5% IIN rate, €550 fixed non-taxable minimum, dependants allowance, and VSAOI social contributions.
Overview of mandatory tax and social insurance rates enforced by the State Revenue Service (VID).
| Tax / Contribution | Rate / Threshold | Paid by |
|---|---|---|
| VSAOI (State Social Insurance) | 10.50% | Employee (deducted from gross) |
| Employer VSAOI | 23.59% | Employer (on top of gross) |
| IIN Base Rate (up to €105,300/yr) | 25.50% | Employee (on taxable base) |
| IIN Higher Rate (over €105,300/yr) | 33.00% | Employee (on excess) |
| Fixed Non-Taxable Minimum | €550 / month (€6,600/yr) | Tax exemption (with booklet) |
| Dependant Allowance | €250 / month (€3,000/yr) | Per registered dependant |
| Statutory Minimum Wage | €780 / month | National minimum 2026 |
Under the latest tax reform, the standard IIN rate is 25.5% for annual income up to €105,300 (or €8,775 per month), and 33.0% for income above that ceiling. An additional 3% surtax applies to total annual incomes exceeding €200,000.
For 2026, Latvia applies a fixed, uniform non-taxable minimum of €550 per month (€6,600 per year) across all qualifying employees when their electronic payroll tax booklet is registered with VID. Pensioners receive an allowance of €1,000 per month.
VSAOI (State Social Insurance Mandatory Contributions) is 10.50% deducted from the employee's gross wage, plus an additional 23.59% paid by the employer on top of the gross salary. The standard contribution ceiling is €105,300 per year.
Employees registered with VID as supporting dependants (children, non-working spouses) receive an additional non-taxable relief of €250 per month (€3,000 per year) per dependant.