Calculators
Salary calculatorfor 2027
Latvia's 2027 tax-free allowance, tax rates and reliefs are already written into law, so net pay can be calculated exactly today. The only thing still undecided is the minimum wage, and it does not enter this calculation.
- Tax-free allowance
- 570 EUR
- per month, set in law
- Income tax rate
- 25,5%
- up to 8775 EUR a month, 33% above
- Social contributions, employee
- 10,50%
- employer pays 23.59%
Your figures
250 EUR a month each, added to the tax-free allowance rather than replacing it.
Net pay in 2027
1145,51EUR
That is 5,10 EUR more than in 2026 on the same figures.
- Gross salary
- 1500,00
- Social contributions, employee 10.50%
- -157,50
- Tax-free allowance
- 570,00
- Taxable amount
- 772,50
- Income tax
- -196,99
- Net pay
- 1145,51
- Social contributions, employer 23.59%
- 353,85
- Full cost to the employer
- 1853,85
Of every euro your employer spends, you receive 61,8 cents.
Calculate from the employer's side or from budget to salary.
This calculation is indicative. The law applies the contribution ceiling and the 33% threshold annually; here they are applied monthly, so with uneven income the final amount settles in the declaration.
What is already settled for 2027, and what is not
The December 2024 tax reform did not legislate one year, it legislated three at once. Almost everything that determines your 2027 pay is therefore known already, and it is not a forecast.
| Item | 2026 | 2027 | Status |
|---|---|---|---|
| Tax-free allowance | 550 EUR | 570 EUR | Set in law |
| Pensioner's tax-free allowance | 1000 EUR | 1000 EUR | Set in law |
| Dependant relief | 250 EUR | 250 EUR | Set in law |
| Income tax, base rate | 25,5% | 25,5% | Set in law |
| Income tax, higher rate | 33% | 33% | Set in law |
| Threshold where the rate changes | 8775 EUR | 8775 EUR | Set in law |
| Social contributions, employee | 10,50% | 10,50% | Set in law |
| Social contributions, employer | 23,59% | 23,59% | Set in law |
| Contribution ceiling | 105 300 EUR | 105 300 EUR | Set in law |
| Minimum wage | 780 EUR | 820 / 835 EUR | Not yet decided |
Two figures are competing for the minimum wage
- 820 EUR: The government's medium-term budget plan
- 835 EUR: The Ministry of Welfare's calculation, 46% of the average gross wage
The decision comes with the 2027 budget, normally in November or December. It does not affect the net pay calculated on this page: the minimum wage sets the lowest lawful gross salary, not the tax rates or reliefs. That is why your 2027 pay can be worked out now, before the budget.
Exactly how much pay rises in 2027
The only change affecting pay is the tax-free allowance rising from 550 to 570 euros. Those 20 euros are no longer taxed at 25.5%, so take-home pay rises by 5.10 euros a month, or 61.20 a year. The amount is the same for someone earning 800 euros and someone earning 3000, because the allowance no longer depends on the size of the salary.
Large salaries are the exception. If the taxable amount exceeds 8775 euros a month, which happens from roughly 10,270 euros gross, the same 20 euros are freed from the 33% rate rather than 25.5%, so the gain is 6.60 euros a month.
| Gross salary | Net 2026 | Net 2027 | Difference |
|---|---|---|---|
| 780,00 EUR | 660,33 | 665,43 | +5,10 |
| 1000,00 EUR | 807,03 | 812,13 | +5,10 |
| 1200,00 EUR | 940,38 | 945,48 | +5,10 |
| 1500,00 EUR | 1140,41 | 1145,51 | +5,10 |
| 2000,00 EUR | 1473,80 | 1478,90 | +5,10 |
| 3000,00 EUR | 2140,58 | 2145,68 | +5,10 |
Calculated with the payroll book applied, no dependants and standard status. With dependants the difference is the same, because the relief is identical in both years.
How the calculation works
Social contributions on gross pay
The employee's contributions are 10.50% of gross pay. The employer pays a further 23.59%, which is not part of your salary but a cost on top of it. The contribution object has a ceiling of 105,300 euros a year, or 8775 a month, above which contributions stop growing.
Tax-free allowance and reliefs
From what remains, the tax-free allowance is deducted: 570 euros a month in 2027, or the pensioner's 1000. On top of that come 250 euros per dependant and, where applicable, additional relief for disability or politically repressed person status. All of these add up, except that disability and repressed-person relief do not combine with each other, where the larger applies.
Income tax
What is left is taxed at 25.5% up to 8775 euros a month and 33% above that. Watch out for a common misunderstanding: the threshold applies to the taxable amount, not to gross pay, so even on a 10,000 euro gross salary everything is still taxed at 25.5%.
Net pay
Net pay is gross salary less the employee's contributions and less income tax. The allowance and reliefs are not paid out in themselves; they only reduce the portion the tax is calculated on.
Frequently asked questions
What is the tax-free allowance in Latvia in 2027?
570 euros a month. This is not a forecast: the transitional provisions of the personal income tax law, adopted by the Saeima in December 2024, set the whole three-year schedule at once, namely 510 euros in 2025, 550 in 2026 and 570 from 2027. The allowance is fixed and the same at every salary level, so it is no longer calculated individually for each person.
What will the minimum wage be in Latvia in 2027?
It has not been decided. The government's medium-term budget plan contains 820 euros, while the Ministry of Welfare's calculation under the agreed formula of 46% of the average gross wage produces 834.9 euros, rounded to 835. The final figure will be adopted together with the 2027 budget, normally in November or December. It does not affect the net pay calculation: the minimum wage sets the lowest lawful gross salary, not the tax rates or allowances.
Do income tax rates change in Latvia in 2027?
No. The two rates introduced by the 2025 reform remain: 25.5% on income up to 105,300 euros a year, or 8,775 a month, and 33% above that. Annual income above 200,000 euros carries a further 3%, settled in the annual income declaration rather than withheld from monthly pay.
How much will net pay rise in 2027 compared with 2026?
By 5.10 euros a month, for everyone whose salary exceeds the tax-free allowance. The arithmetic is simple: the allowance rises by 20 euros, that 20 euros is no longer taxed at 25.5%, and 20 times 25.5% is 5.10 euros. Rates and social contributions do not change, so there is no other source of increase.
Does the dependant allowance change in 2027?
No, it stays at 250 euros a month for each dependant registered in the payroll book. The important thing to know: the allowance is added to the tax-free minimum rather than being contained within it. With one dependant in 2027 the untaxed portion is 570 plus 250, so 820 euros, which is worth roughly 63.75 euros more take-home pay per month.
Does the calculator include disability and politically repressed person allowances?
Yes. People with group I or II disability get an additional 154 euros a month, group III gets 120 euros, and politically repressed persons and participants of the national resistance movement get 154 euros. Where more than one applies, the largest is used rather than the sum. These come on top of the tax-free minimum and the dependant allowance.
What happens if the payroll book has not been submitted to the employer?
The employer then applies neither the tax-free minimum nor any allowance, and withholds income tax on the whole amount after social contributions. On a 1500 euro gross salary in 2027 that is a difference of roughly 145 euros a month. The overpayment can be recovered by filing an annual income declaration.
When will the final 2027 tax figures be known?
Most of them are already known, because the tax rates, the tax-free minimum, the allowances and the social contribution rates are written into law through 2027. The only open item is the minimum wage, adopted together with next year's budget. We will update this page the day that decision is made.
Other calculators
- What an employee costsThe same calculation from the employer's side, and budget to salary.
- Self-employed or employedBoth options side by side at equal cost to the payer.
- Salary calculator 2026This year's rates with the 550 euro allowance.
- All calculatorsThe full list of tax calculators.
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