Latvia Income Tax (IIN) 2027 Calculator
Latvia personal income tax 2027: 20% up to EUR 20,004, 23% up to EUR 78,100, 31% above. Source: vid.gov.lv.
Latvia Income Tax Brackets 2027
Latvia applies progressive income tax. Brackets: € 0+ at 20%, € 20,004+ at 23%, € 78,100+ at 31%. Tax is computed on each tranche progressively, not flat on the whole income. Source: State Revenue Service (vid.gov.lv).
How Progressive Tax Works
A € 100,000 income in a latvia 2-tier (10%/30% at 50,000) system pays 10% on the first € 50,000 = € 5,000, plus 30% on the next € 50,000 = € 15,000, total € 20,000 — effective rate 20%, not 30%. Marginal rate (30%) only applies to additional income.
Allowable Deductions in Latvia
Non-taxable minimum EUR 6,000/year for low earners, decreasing to zero at EUR 21,600 annual income. Dependent allowance EUR 3,000/year per dependent. Standard or itemized deductions reduce taxable income. Common items: retirement contributions, professional expenses, charitable donations, mortgage interest, family allowances, healthcare costs. Filing requires receipts and documentation.
Filing Deadlines and Methods
Annual returns in Latvia are filed via the official tax-authority portal. Electronic filing is encouraged. Deadlines vary — typically Q1 or Q2 of the following year. Late filing penalties apply. Always consult State Revenue Service for the current year's exact deadline and methods.
Frequently Asked Questions
What are Latvia's income tax brackets?
Progressive: € 0+ → 20%, € 20,004+ → 23%, € 78,100+ → 31%. Source: State Revenue Service.
Is it marginal or effective rate?
Marginal: tax on the next dollar. Effective: total tax / total income. Progressive systems mean effective is always below the top marginal.
Who must file taxes in Latvia?
Generally residents with taxable income above the personal allowance. Non-residents with Latvia-source income also file. Some systems exempt low earners completely. Source: State Revenue Service.
What deductions can I claim?
Non-taxable minimum EUR 6,000/year for low earners, decreasing to zero at EUR 21,600 annual income. Dependent allowance EUR 3,000/year per dependent. Check the year's allowable items via the official tax authority.
How to file taxes in Latvia?
Most countries offer e-filing through their tax authority's portal (vid.gov.lv). Documentation required: ID, income statements, deduction receipts. Late filing typically incurs penalties + interest.