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.

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.
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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.