Salary calculator
Net salary (after tax)
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Net salary, EUR
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Social tax10.5%
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Social tax, employer's part
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Social tax, employer's part23.59%
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Business risk fee0.36€
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Total employer's expenses
Informācija par algas nodokļa grāmatiņas statusu, kā arī piemērojamajiem nodokļu atvieglojumiem, tostarp no Valsts ieņēmumu dienesta puses individuāli aprēķināto mēneša neapliekamo minimumu, ir atrodama elektroniskās deklarēšanas sistēmas (EDS) ietvaros zem sadaļas “Uz sākumu” -> “Algas nodokļa grāmatiņa”.
Vēršam uzmanību, ka ja algas nodokļa grāmatiņa ir iesniegta pie darba devēja, tad pie darba algas aprēķina darba devējs piemēro algas nodokļu grāmatiņā uzrādītos nodokļu atvieglojumus, kas, tādejādi, samazina ar iedzīvotāju ienākuma nodokli (IIN) apliekamo objektu.
How to Calculate Salary in Latvia
- Enter the gross monthly salary, meaning salary before taxes.
- Specify the monthly non-taxable minimum, 550 EUR per month by default.
- Enter the number of dependents.
- Mark whether the salary tax book has been submitted to the employer, as well as pension or disability status.
- Click “Calculate” - you will immediately see the net salary, calculated taxes and employer costs.
Payroll Taxes in 2026
The following taxes and mandatory contributions apply to salaries in Latvia in 2026:
| Tax / Contribution | 2026 Rate | Paid by |
|---|---|---|
| State Social Insurance Contributions (Employee's Share) | 10.50% | Employee (withheld from salary) |
| State Social Insurance Contributions (Employer's Share) | 23.59% | Employer (paid in addition to salary) |
| Personal Income Tax (PIT) | 25.50% | Employee |
| Higher PIT Rate (Income Above EUR 8,775 per Month) | 33% | Employee |
| Entrepreneurship Risk State Fee | EUR 0.36/month | Employer |
Personal Income Tax (PIT) is calculated from the gross salary after deducting the employee's State Social Insurance Contributions (SSIC), the non-taxable minimum, and allowances for dependents. The non-taxable minimum and tax allowances are applied only if the employee's tax book has been submitted to that employer.
Gross and Net Salary - What's the Difference
Gross salary is the salary before taxes and mandatory deductions, as specified in the employment contract. Net salary is the take-home pay that an employee receives after Personal Income Tax (PIT) and mandatory State Social Insurance Contributions (SSIC) have been deducted. The salary calculator works both ways: it shows the net salary for a given gross salary and calculates the gross salary required to receive a desired net amount.
Non-Taxable Minimum in 2026
Since 2025, the non-taxable minimum has been fixed (it is no longer differentiated). In 2026, it amounts to EUR 6,600 per year or EUR 550 per month (EUR 510 per month in 2025). For pensioners, the non-taxable minimum is EUR 12,000 per year (EUR 1,000 per month) and applies to pension payments. The non-taxable minimum can only be applied at one place of employment - the employer with whom the employee's tax book has been submitted.
Employee Tax Book
The employee tax book is no longer a paper document - it is now maintained electronically in the Latvian State Revenue Service's Electronic Declaration System (EDS). It contains information about tax allowances (for dependents, disability, politically repressed person status) and pension status. If the tax book has been submitted to the employer, the non-taxable minimum and tax allowances are applied when calculating the salary. If it has not been submitted, taxes are calculated without these allowances, and any overpaid Personal Income Tax can be reclaimed by filing the annual income tax return.
Total Employer Costs
The total cost of employing a worker consists of the gross salary, the employer's State Social Insurance Contributions (23.59%), and the Entrepreneurship Risk State Fee (EUR 0.36 per month). The calculator automatically calculates this amount, making it easier to plan payroll and staffing budgets.
Tax Allowances for Dependents
For each dependent (for example, a child), an employee may claim a tax allowance that reduces the amount of income subject to Personal Income Tax (PIT). Like the non-taxable minimum, this allowance is applied only if the employee's tax book containing the relevant information has been submitted to the employer. In the calculator, simply enter the number of dependents.