Personal Income Tax (PIT) 2026 – Latvia

Applies to annual income up to €105,300. After subtracting €6,600 personal allowance, effective rate lower. On €50,000: pay 25.5% on €43,400 = €11,067 (22.1% effective). Cap aligns with social security ceiling.

Marginal rate 33% on income exceeding €105,300. On €150,000: first €105,300 at 25.5%, remaining €44,700 at 33%. Plus 3% additional tax on portion above €200,000.

Extra 3% surtax on income exceeding €200,000 annually. Total marginal rate becomes 36% (33% + 3%) on income above €200k. Applied when filing annual declaration.

Fixed for all taxpayers regardless of income level. Simplified from previous complicated system. Applied automatically if tax book submitted. Increases to €570/month from 2027.

Enhanced allowance for age or disability pensioners. Working pensioners can split: €500 applied to pension income, €500 to employment income. Must notify pension disburser and employer.

€250/month for each dependent child or disabled family member. No limit on number. Applied automatically if registered with tax authorities. Significantly reduces taxable income for families.