Latvia Personal Income Tax
Detailed personal income tax rates and rules for Latvia in 2026.
Latvia applies progressive income tax rates: 20% on income up to €20,004, 23% on income from €20,005 to €78,100, and 31% on income above €78,100. A non-taxable minimum of €6,000 per year applies (reduced for higher incomes). Capital income is taxed at a flat 20%. Latvia reformed its tax system in 2018, moving from a flat 23% rate to the current progressive structure.
| Income Range (EUR) | Tax Rate |
|---|---|
| €0 – €20K | 20% |
| €20K – €78K | 23% |
| €78K+ | 31% |
Filing Deadline
June 1 of the following year
Residency Rule
An individual is a Latvian tax resident if their permanent home is in Latvia or if they stay in Latvia for at least 183 days in any 12-month period. Residents are taxed on worldwide income.
Additional Notes
Latvia offers a micro-enterprise tax regime for small businesses with turnover up to €40,000, paying 25% on revenue (covering income tax and social contributions). Patent fees are available for certain self-employed activities. Latvia has tax incentives for startup employees including stock option benefits.
How Latvia Income Tax compares
Latvia’s top personal income tax rate of 31% is the 91st highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Europe’s regional average of 32%.
