Work & incomeLatvia
Tax on pay in Latvia
How much of my salary never arrives?
Latvia's tax on pay is 26.00 % — #22 of 37 countries on the atlas (lower is better). Period 2025.
26.00%
Source: OECD Taxing Wages + OECD Tax Database
Of every $100 of gross pay at the average wage in Latvia, about $26 goes to income tax and employee social contributions.
Among 37 countries
- Rank
- #22 of 37
- lower is better
- Ranked behind
- 41 %
- 15 of 37 countries
In Europe: #11 of 25vs median 24.93 %: +1.07 pp (worse)
The neighbourhood
| # | Country | Tax on pay | vs Latvia |
|---|---|---|---|
| 20 | Ireland | 25.10 % | −0.90 pp |
| 21 | Canada | 25.61 % | −0.39 pp |
| 22 | Latvia | 26.00 % | — |
| 23 | Greece | 26.12 % | +0.12 pp |
| 24 | Netherlands | 27.86 % | +1.86 pp |
Income tax plus employee social contributions as a share of gross pay, for a single person at the average wage (OECD). The share of a salary that never arrives.
How to read this figure
The OECD net personal average tax rate: income tax plus the EMPLOYEE’s social contributions as a share of gross wage earnings, for a single person with no children at exactly the average wage. This is the rate you can apply to a salary. It is deliberately smaller than the tax wedge on the same page, which measures a wider bite (it adds the employer’s contributions) over a wider base (total labour cost) — two honest answers to two different questions.