Salary calculator
Employee
Employer
Allowances applied 550,00 € · income tax is 13,5% of gross salary · to the state in total 713,80 € (38% of total employer cost).
2026 payroll taxes and rates in Latvia
- Personal income tax (IIN)
- 25,5%on gross salary after social security and the non-taxable minimum
- Income tax above 105 300,00 € a year
- 33%applied in the annual income tax return
- Non-taxable minimum
- 550,00 € a monthif a payroll tax book is submitted to the employer
- Dependant relief
- 250,00 € a monthper dependant
- Social security, employee
- 10,5%withheld from gross salary
- Social security, employer
- 23,6%paid on top of gross salary
- Social security contribution ceiling
- 105 300,00 € a yearabove it — solidarity tax
- Minimum monthly wage
- 780,00 € a monthfor normal working hours
- Business risk state fee
- 0,36 € a monthper employee, paid by the employer
How net salary is calculated
First, 10.5% employee social security is withheld from the gross salary. The non-taxable minimum and dependant relief are deducted from the remainder, and 25.5% income tax is calculated on the rest. On top of the gross salary, the employer pays 23.59% social security and the business risk fee.
Example: from a gross salary of 1500,00 € (with a payroll tax book) the employee receives 1140,41 €, income tax is 202,09 € and the total employer cost is 1854,21 €.
On the minimum wage of 780,00 €, take-home pay is 660,33 €.
Payroll tax book
The employer applies the non-taxable minimum and reliefs only if the employee has submitted a payroll tax book to this employer in the VID Electronic Declaration System. The book can be submitted to one place only — usually the main job. Without it, 25.5% income tax is calculated on the whole salary after social security.
What the calculator does not include
The calculator shows the general case. It does not include reliefs for pensioners and people with disabilities, special social security statuses, eligible expenses (education, medical) and third-pillar pension contributions refunded through the annual tax return, or the 33% rate and solidarity tax on annual income above €105,300. Rates checked on the State Revenue Service (VID) website in October 2026.