Payroll tax · 2026

The non-taxable minimum is the part of a salary on which no personal income tax is withheld. In 2026 it is EUR 550 a month for every employee who does not receive a pension, provided the employee’s payroll tax book is filed with the employer.

EUR 550
a month, EUR 6,600 a year, whatever the salary
Pensioner’s non-taxable minimumEUR 1,000
Relief for each dependantEUR 250
Salary tax rate25.5%
Employee social security10.50%
In 2025 the non-taxable minimum wasEUR 510
Amounts are per month, rates in percent. The pensioner’s minimum is EUR 12,000 a year. A working pensioner whose pension is no more than EUR 1,000 a month can split it between pension and salary.

How the employer applies it

1

Only with the tax book

The employer deducts the non-taxable minimum every month when calculating salary tax, but only if the employee’s payroll tax book is filed with that employer. If there are several employers, only the one holding the tax book applies it.

2

Dependants on top

If a dependant is registered in the tax book, the employer deducts a further EUR 250 a month for each one. If the dependant is not registered, the relief is not applied to salary, but it can be claimed through the annual income tax return.

Worked example: gross salary EUR 1,500

EUR a monthWith tax bookWith 1 dependantNo tax book
Gross salary1,500.001,500.001,500.00
Employee social security 10.50%157.50157.50157.50
Non-taxable minimum550.00550.000.00
Dependant relief0.00250.000.00
Taxable income792.50542.501,342.50
Salary tax 25.5%202.09138.34342.34
Net salary1,140.411,204.161,000.16

Assumptions: a full-time employee who does not receive a pension, with annual income up to EUR 105,300 (EUR 8,775 a month on average); cents rounded. For this employee the non-taxable minimum adds EUR 140.25 to net pay every month, EUR 1,683 a year. The employer’s cost does not change: the employer pays 23.59% social security on the gross salary either way.

For the full employer rates, see Social security contributions 2026.

Calculate the cost of a hire

Frequently asked questions

What is the non-taxable minimum in Latvia in 2026?

EUR 550 a month, or EUR 6,600 a year. In 2025 it was EUR 510 a month.

Does it depend on the size of the salary?

No. VID states that it applies regardless of the actual amount of income.

What happens if the tax book is not filed?

The employer does not apply the non-taxable minimum and withholds salary tax on all income after social security. On a EUR 1,500 gross salary the tax is EUR 140.25 a month higher. The amount not applied can be recovered through the annual income tax return.

What should I check when hiring someone new?

Whether the payroll tax book is filed with you, whether dependants are registered, and whether the salary offer talks about the gross or the net amount.

Where are the sources?

Law on Personal Income Tax (likumi.lv, in Latvian). VID: Non-taxable minimum (in Latvian), Pensioner’s non-taxable minimum (in Latvian), Personal income tax rates, Social security rates (in Latvian). Checked 24 Sep 2026. General information, not individual tax advice.