Latvia self-employed tax calculator 2026
How much a pašnodarbinātā persona pays in Latvia: social contributions (VSAOI), personal income tax and the microenterprise tax — side by side, with 2026 rules from the State Revenue Service (VID).
Your business
Assumes the same profit every month. VSAOI is calculated month by month, so with uneven income the real amount differs.
General regime
VSAOI + income tax 25.5% on profit
- Profit per year
- €21,600
- Social contributions (VSAOI)
- -€4,132
- Income tax (IIN)
- -€2,771
Microenterprise tax (MUN)
25% of turnover, replaces VSAOI and income tax
- Turnover per year
- €24,000
- Expenses
- -€2,400
- Microenterprise tax 25%
- -€6,000
How the self-employed are taxed in Latvia in 2026
Rules for a Latvian tax resident registered for economic activity (saimnieciskā darbība).
Social contributions (VSAOI)
Calculated every month on profit (revenue − expenses). If monthly profit is at least €780 (the 2026 minimum wage): 31.07% on a base of at least €780 — €242.35 — plus 10% pension contribution on the rest. Below €780: only 10% for the pension. Filed quarterly by the 17th, paid by the 23rd of January, April, July and October. The quarterly minimum of €2,340 no longer applies from 2026.
Personal income tax (IIN)
Paid once a year through the annual return (1 March – 1 June, payment by 23 June): 25.5% on taxable income up to €105,300 and 33% above, plus 3% above €200,000. Taxable income = profit − VSAOI paid − non-taxable minimum €6,600 (€550 a month) − €3,000 per dependant. There are no advance payments and no cap on documented expenses.
Microenterprise tax (MUN)
25% of turnover with no deduction for expenses; it replaces both VSAOI and income tax (80% goes to social insurance). Available if you are not VAT-registered and turnover stays within €50,000 a year. Apply by 15 December for the next year. Worth it when expenses are low and profit is modest — but your pension base is smaller.
Examples: general regime vs microenterprise tax
What you keep per year at different monthly revenues, with expenses at 10% of revenue and no dependants. Checked against the kalkulatori.lv self-employed calculator.
| Revenue / month | General regime | Microenterprise tax (MUN) |
|---|---|---|
| €1,000 | €7,455 | €7,800 |
| €2,000 | €14,697 | €15,600 |
| €3,000 | €21,938 | €23,400 |
| €4,000 | €29,179 | €31,200 |
Sources: VID guide «Pašnodarbinātā VSAOI 2026» (05.05.2026), Personal Income Tax Law, Microenterprise Tax Law. This is an estimate, not tax advice.
Frequently asked questions
How much tax does a self-employed person pay in Latvia in 2026?
Under the general regime: social contributions of 31.07% on €780 (€242.35 a month) plus 10% on profit above €780, and income tax of 25.5% on annual profit after contributions and the €6,600 non-taxable minimum. With €1,500 profit a month that is about €3,772 in contributions and €1,945 in income tax a year — you keep about €12,283.
Is there still a quarterly minimum of €2,340 in contributions?
No. From 2026 the self-employed no longer have to pay contributions from at least three minimum wages (€2,340) per quarter — the amendment of 16 April 2026 applies from 1 January 2026. Contributions are now based on each month's actual profit.
What if my monthly profit is below €780?
Then you pay only the 10% pension contribution on your profit — for example €40 on €400. You are not covered by the full social insurance (sickness, maternity, disability) for that month.
Microenterprise tax or the general regime — which is better?
MUN takes 25% of turnover and ignores expenses, so it pays off when costs are low and profit is below roughly €2,000–2,500 a month. With high expenses or higher profit the general regime usually leaves more. MUN is only possible up to €50,000 turnover a year and gives a smaller pension base.
When do the self-employed file and pay in Latvia?
VSAOI: quarterly report by the 17th and payment by the 23rd of January, April, July and October. Income tax: annual return from 1 March to 1 June, payment by 23 June (1 July / 23 July if income exceeds €105,300). MUN: quarterly return by the 15th, payment by the 23rd.