Self-Employed Tax Rates 2026: Quick Reference Card

Seven numbers define the tax life of every self-employed person in Latvia in 2026. Here they are in one place, without the preamble.

2026 Rates and Thresholds

| Parameter | Value | |---|---| | VSAOI rate | 31.07% of income | | VSAOI minimum base | EUR 780/month (minimum wage) | | VSAOI minimum payment | EUR 242.35/month | | VSAOI maximum base | EUR 105,300/year | | IIN rate (bracket 1) | 25.5% (income up to EUR 105,300) | | IIN rate (bracket 2) | 33% (income above EUR 105,300) | | VAT registration threshold | EUR 50,000 (12-month rolling) |

VSAOI is calculated on income after business expenses. IIN is calculated on income after both expenses and VSAOI. This stacking means the effective combined marginal rate on the first bracket is approximately 47.6%, but EUR 31.07 out of every EUR 100 goes to social insurance -- pension, healthcare, disability, and unemployment coverage.

Payment Deadlines

VSAOI: Monthly, by the 15th of the following month.

IIN advances: Quarterly -- April 15, July 15, October 15, January 15.

Annual declaration: June 1 of the following year.

Regime switch application: December 15 (effective January 1).

Quick Calculation Example

Self-employed income: EUR 3,000/month, EUR 500/month in expenses.

• Monthly net income: EUR 2,500
• VSAOI: EUR 2,500 x 31.07% = EUR 776.75
• Monthly IIN base: EUR 2,500 - EUR 776.75 = EUR 1,723.25
• Monthly IIN: EUR 1,723.25 x 25.5% = EUR 439.43
• Total monthly tax: EUR 1,216.18
• Take-home after taxes and expenses: EUR 1,283.82
• Effective rate on gross: 40.5%

For the full calculation methodology and optimization strategies, see our complete self-employed tax guide.

---

Rates Are Simple. Your Situation Probably Is Not.

Mixed income sources, expense deductions, dual-activity VSAOI exemptions, and the interaction between IIN brackets and social contributions create real complexity. We calculate your effective tax rate based on your actual income pattern -- not generic examples.

Get your personal tax calculation →