Latvia vs Austria
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇱🇻 Latvia — Municipal Income Tax
Latvia's 119 municipalities levy a local income tax portion — 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamā īpašuma nodoklis) is set by municipalities at 0.2%–3% of cadastral value. Latvia uses the progressive income tax system introduced in 2018 (replacing the flat 23%). Vehicle tax and business risk duty are national.
🇦🇹 Austria — Municipal & Church Taxes
Austria's 9 Bundesländer (states) do not set separate income tax rates — this is federal. However, municipalities levy Kommunalsteuer (municipal payroll tax) at 3% on wages paid by employers, and a Dienstgeberabgabe (employer levy). Church tax (Kirchenbeitrag) is compulsory for registered Catholics at ~1% of income. Vienna and other large cities have additional levies. Property tax (Grundsteuer) rates are set by municipalities within federal parameters.
Latvia vs Austria: Key Tax Differences (2026)
💰 Income Tax: 🇦🇹 Austria has a higher top income tax rate (20–31% vs 0–55%). 🇱🇻 Latvia is more favourable for high earners.
🛒 VAT/Sales Tax: Latvia has a higher consumption tax (12–21% vs 10–20%).
🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 21%), which can influence business location decisions.
📈 Capital Gains: 🇱🇻 Latvia taxes investment gains at a lower rate (20% vs 27.5%), benefiting investors.