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Salary calculator for 2027

Latvia's 2027 tax-free allowance, tax rates and reliefs are already written into law, so net pay can be calculated exactly today. For the 2027 minimum wage the National Tripartite Cooperation Council backed 820 euros on 8 October; the Cabinet still has to adopt it. It does not enter this calculation.

Tax-free allowance
570 EUR
Income tax rate
25,5%
Social contributions, employee
10,50%
Calculation

Your figures

5003000+
Payroll book held by this employer

250 EUR a month each, added to the tax-free allowance rather than replacing it.

Net pay in 2027EUR

1145,51

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 employer applies the 33% rate to each month's pay, so with uneven income the final amount settles in the annual income declaration. Contributions are withheld on the whole gross salary, including above the annual ceiling of 105,300 euros; VSAA records contributions on the excess as solidarity tax.

Rates

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.

Item20262027Status
Tax-free allowance550 EUR570 EURSet in law
Pensioner's tax-free allowance1000 EUR1000 EURSet in law
Dependant relief250 EUR250 EURSet in law
Income tax, base rate25,5%25,5%Set in law
Income tax, higher rate33%33%Set in law
Threshold where the rate changes8775 EUR8775 EURSet in law
Social contributions, employee10,50%10,50%Set in law
Social contributions, employer23,59%23,59%Set in law
Social contributions, working pensioner, employee / employer9,25% / 20,77%9,25% / 20,77%Set in law
Contribution ceiling105 300 EUR105 300 EURSet in law
Minimum wage780 EUR820 EURAwaiting the Cabinet
Minimum wage: 820, not 835 eurosAwaiting the Cabinet
Finance Ministry proposal, backed by the tripartite council on 8.10.2026
820 EUR
Formula, 46% of the average gross wage, not followed
835 EUR

The minimum wage rises by 40 euros, as planned, rather than the 55 euros the formula would give. The Cabinet still has to adopt it by regulation, normally in November. 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.

Change

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 10,440 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 salaryNet 2026Net 2027Difference
780,00 EUR660,33665,43+5,10
1000,00 EUR807,03812,13+5,10
1200,00 EUR940,38945,48+5,10
1500,00 EUR1140,411145,51+5,10
2000,00 EUR1473,801478,90+5,10
3000,00 EUR2140,582145,68+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.

Pension

How much of your pay goes to your pension

Of 1500,00 EUR gross, 300,00 EUR a month is credited to your pension capital: 225,00 EUR in the 1st pillar and 75,00 EUR in the 2nd.

This is not money taken on top of your pay. The 20% is part of the social contributions you and your employer already pay, so it does not change your net salary. From 2025 to 2028 the 2nd pillar gets 5%, down from 6%. The 2nd pillar is mandatory for anyone born from July 1971 on and voluntary for those born earlier. If you are not in it, the whole 20% goes to the 1st pillar.

The signature drive on 2nd-pillar savings. Until 6 May 2027, signatures are being collected for amendments to the State Funded Pensions Law. In certain cases they would let people withdraw their 2nd-pillar savings in full or in part before pension age. Net pay would not change, because the contributions would still be part of the same social tax. Latvian citizens aged 18 and over can sign. If at least 154,241 voters sign, the Saeima will consider the bill, and if it does not adopt it without substantial changes, it goes to a referendum.

The initiators argue that people should decide for themselves how to use their savings.

The bill and how to sign, on the CVK site (in Latvian)
Method

How the calculation works

1.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. Contributions are withheld on the whole salary, even once a year's pay passes the contribution ceiling of 105,300 euros. VSAA records contributions on the excess as solidarity tax, and they no longer build your pension capital. A working pensioner pays less, 9.25% and 20.77%, because the rates leave out unemployment insurance.

2.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.

3.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%.

4.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.
Questions

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?

820 euros. On 8 October 2026 the National Tripartite Cooperation Council backed the Finance Ministry's proposal of 820 euros, as in the government's medium-term plan, rather than the 835 euros that the formula of 46% of the average gross wage produces. The Cabinet still has to adopt it by regulation, normally in November. 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.
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