Latvia tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Latvia tax profile.
Tier 2 — every figure has an accepted source; some rest on a PwC / Deloitte / KPMG / EY summary (marked †). Figures last changed 4 November 2026. Profile last reviewed 2 May 2026.
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| Salary | Long-term gains | Short-term gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|---|
| Latvia | 43.04% | 28.5% | 28.5% | 28.5% | 28.5% | 13%† | 28.5% |
† This figure rests on a PwC, Deloitte tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in Latvia?
The top rate on a salary is 43.04%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 33% above EUR 105,300.
How are capital gains taxed in Latvia?
The top rate on a long-term capital gain is 28.5%. The holding period that makes a gain long-term is 60 months.
How are dividends and interest taxed in Latvia?
The top rate is 28.5% on dividends and 28.5% on interest. Rental income is taxed at up to 13%.
How is crypto taxed in Latvia?
Latvia taxes a gain on crypto assets as a capital gain, at up to 28.5%.
Does Latvia tax foreign income?
Yes. Latvia taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does Latvia have a wealth tax?
No. Latvia has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Latvia have an exit tax for individuals?
No. In our model Latvia does not tax an individual's unrealised gains when the individual moves abroad.
What special tax regimes does Latvia have?
Our profiles list 3 regimes: Investment Account (Ieguldijuma konts, II konts) - deferred-tax wrapper; Micro-enterprise tax (Mikrouzne_muma nodoklis, MUN); Start-up Company Employees regime (Jaunuznemumu darbibas atbalsta likums) (up to 5 years). Each has its own conditions.
When do you become tax resident in Latvia?
The Latvia day test (183 days in 12 months): at least 183 days in any 12 months starting or ending in the tax year. The State Revenue Service assesses home, family, property and social-insurance ties when a person changes residence.
Residence decides whether Latvia taxes you on these rates. See the Latvia day-count test and count your own days.
Sources
The Latvia profile cites 8 sources for these rules, 8 of them from a government or a statute.
- On Personal Income Tax, sections 10 and 15 · official, retrieved 2026-11-03
- Cabinet Regulation 899 annex 4.5: PIT Act 15.1 examples · official, retrieved 2026-11-03
- Solidarity tax · official, retrieved 2026-11-03
- Changes in taxation and finances from 2026 · official, retrieved 2026-11-03
- Mandatory annual income declaration · official, retrieved 2026-11-03
- Uznemumu ienakuma nodokla likums (Corporate Income Tax Law - Estonian-style distribution tax) · official, retrieved 2026-05-02
- VID - Kapitala ienakums un kapitala pieaugums (Capital Income guidance) · official, retrieved 2026-05-02
- IIN likums Art. 11 - Kapitala ienakums un kapitala pieaugums (Capital income/gains) · official, retrieved 2026-05-02
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Latvia with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Latvia side by side with other countries, see every country or try the live demo.
Other countries in Eastern Europe: Moldova, Montenegro, North Macedonia, Poland, Romania, Serbia.