Your details

Year

Calculate

Pay type

Gross salary, EUR per month

Tax book filed with this employer (algas nodokļa grāmatiņa)

Usually at your main job. Without it, the non-taxable minimum and reliefs are not applied.

More options dependants, pensioners, disability

Number of dependants

Non-taxable minimum, EUR per month

Employee status

Pensioners and some other groups pay lower social security (VSAOI) rates.

I receive an old-age or disability pension

Pensioners don’t get the general non-taxable minimum — they have a pensioner allowance of €1,000 per month. If the tax book is filed with the employer, it is split: €500 on salary and €500 on pension. Without it, the employer withholds IIN from the whole salary.

Disability group

Gives an extra IIN relief (with a tax book). The VSAOI rate does not change.

Politically repressed person or member of the national resistance movement

Extra IIN relief of €154 per month (with a tax book). Legal basis: Cabinet Regulation No. 138, para. 3.

Other reliefs, EUR per month

Result

Take-home pay per month

€1,340.44

from a gross salary of €1,800.00 · costs the employer €2,224.98

How the employer’s cost of €2,224.98 is split

Employee take-home€1,340.4460%
Employee taxes (VSAOI + IIN)€459.5621%
Employer taxes (VSAOI + duty)€424.9819%

Withheld from salary

Gross salary	€1,800.00
Social security, VSAOI (10.5%)	−€189.00
Personal income tax, IIN (25.5%)	−€270.56
Take-home pay	€1,340.44

IIN = 25.5% × €1,061.00. This is the gross salary minus: VSAOI, non-taxable minimum €550.00. How is this calculated?

Employer pays

Gross salary	€1,800.00
Social security, employer share (23.59%)	+€424.62
State business risk duty	+€0.36
Total employer cost	€2,224.98

✓ Rates checked on 19.10.2026 against the law and VID guidance.

Compare years (same salary)

Year	VSAOI empl.	VSAOI employer	Net	Employer cost

Saved calculations

What changes in 2026

From 1 January 2026 the non-taxable minimum rises from €510 to €550 a month and the minimum wage from €740 to €780. Tax rates stay the same. For example, on a €1,800 gross salary you take home €10.20 more in 2026 than in 2025.

Item	2025	2026
Minimum monthly wage	€740	€780
Non-taxable minimum per month	€510	€550
Pensioner non-taxable minimum	€1,000	€1,000
IIN rate on salary	25.5%	25.5%
VSAOI employee	10.5%	10.5%
VSAOI employer	23.59%	23.59%
Dependant relief per month	€250	€250
VSAOI income cap per year	€105,300	€105,300
Business risk duty	€0.36	€0.36

How net salary is calculated

Example: gross salary of €1,800 a month, 2026, tax book filed, no dependants.

Employee social security: €1,800 × 10.5%€189.00
Taxable income: €1,800 − €189 − €550 non-taxable minimum€1,061.00
Income tax: €1,061 × 25.5%€270.56
Net salary: €1,800 − €189 − €270.56€1,340.44

On top of the salary the employer pays its VSAOI share (€1,800 × 23.59% = €424.62) and the €0.36 risk duty, so the total cost is €2,224.98.

Dependant and disability reliefs are deducted in step 2 together with the non-taxable minimum. A working pensioner gets €500 instead of €550 (the other half of the pensioner allowance is applied to the pension). Without a tax book nothing is deducted in step 2, so the tax is higher.

If annual income exceeds €105,300, IIN on the part above that amount is 33%. The employer does not withhold it monthly — the difference is settled in the annual income tax return.

Glossary

Gross salary (bruto alga): The salary “on paper” — the amount in your employment contract before taxes are withheld.
Net salary (neto alga): Take-home pay — what the employee receives after VSAOI and IIN are withheld.
VSAOI: Mandatory state social insurance contributions (social security tax). They fund pensions, sick pay, unemployment and other benefits. The employee pays 10.5% (withheld from salary) and the employer 23.59% (on top of salary). Pensioners and some other groups pay lower rates.
IIN: Personal income tax (iedzīvotāju ienākuma nodoklis). On salary it is 25.5% of the income left after deducting VSAOI, the non-taxable minimum and reliefs.
Non-taxable minimum (neapliekamais minimums): The part of income on which no IIN is withheld. Since 2025 it is the same for everyone (€550 a month in 2026) and is applied only by the employer that holds your tax book.
Tax book (algas nodokļa grāmatiņa): An electronic record in the VID system where you name your main employer. Only that employer applies the non-taxable minimum and reliefs. It can be filed with one employer at a time.
Dependant relief: €250 a month for each dependant (for example, a child) registered in your tax book. It reduces taxable income the same way as the non-taxable minimum.
VSAOI income cap: The annual income threshold (€105,300). Income above it is subject to solidarity tax, and in the annual tax return IIN on that part is 33%.
Business risk duty: A small fixed amount (€0.36 a month) the employer pays for each employee.

Sources

Rates and the example are based on current legislation and guidance from Latvian state institutions (documents in Latvian):

Law “On Personal Income Tax”: Section 12 (non-taxable minimum), Section 13 (reliefs, dependants), Section 15 (IIN rates), Section 17 (withholding from salary) — likumi.lv
Law “On State Social Insurance”: Section 18 (VSAOI rates), Section 14 (VSAOI maximum base) — likumi.lv
Cabinet Regulation No. 656 — minimum monthly wage — likumi.lv
Cabinet Regulation No. 676 — differentiated non-taxable minimum until 2024 — likumi.lv
VID: tax book (Algas nodokļa grāmatiņa)
VSAA: pensioner non-taxable minimum

Last updated: 19.10.2026. This calculator is for information only — the exact amount on your payslip is determined by your employer’s payroll.