WorldTax Compareโ† All Comparisons

Latvia vs Canada
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฑ๐Ÿ‡ป Latvia
vs
๐Ÿ‡จ๐Ÿ‡ฆ Canada
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
20โ€“31%
31% top; NATO spending affecting fiscal balance
No change
15โ€“33%
Federal brackets; new govt may revisit top rates
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
12โ€“21%
21% standard maintained
No change
5โ€“15%
GST/HST normalized after holiday period
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20% distributed profits; Pillar Two active
No change
15%
15% federal; Global Minimum Tax active
No change
Capital Gains Tax
Capital Gains Tax
20%
20% as income
No change
~33.3%
2/3 inclusion rate maintained
No change
Social Security & Payroll
Social Security / Payroll
~35.09%
Contribution rates stable; pension II pillar growing
No change
~12.3%
CPP contribution rates stabilizing
No change
State, Regional & Local Taxes

๐Ÿ‡ฑ๐Ÿ‡ป Latvia โ€” Municipal Income Tax

Latvia's 119 municipalities levy a local income tax portion โ€” 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamฤ ฤซpaลกuma nodoklis) is set by municipalities at 0.2%โ€“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.

๐Ÿ‡จ๐Ÿ‡ฆ Canada โ€” Provincial Income & Sales Taxes

Canada's 10 provinces each levy their own income tax (4%โ€“25.75% top). Combined federal+provincial top rates exceed 50% in Quebec, Nova Scotia, and Ontario. Quebec has its own QPP and QST (9.975%). Alberta has no provincial sales tax. HST replaces GST+PST in Atlantic provinces and Ontario. Property taxes are municipal.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Latvia vs Canada: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡จ๐Ÿ‡ฆ Canada has a higher top income tax rate (20โ€“31% vs 15โ€“33%). ๐Ÿ‡ฑ๐Ÿ‡ป Latvia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Latvia has a higher consumption tax (12โ€“21% vs 5โ€“15%).

๐Ÿข Corporate Tax: ๐Ÿ‡จ๐Ÿ‡ฆ Canada offers a lower corporate rate (15% vs 20%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฑ๐Ÿ‡ป Latvia taxes investment gains at a lower rate (20% vs 33.3%), benefiting investors.

Related Comparisons

๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ช๐Ÿ‡ช EstoniaTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ฉ๐Ÿ‡ช GermanyTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ฑ๐Ÿ‡น LithuaniaTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ธ๐Ÿ‡ช SwedenTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ฌ๐Ÿ‡ง United KingdomTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡บ๐Ÿ‡ธ United StatesTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ฆ๐Ÿ‡น AustriaTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ง๐Ÿ‡ช BelgiumTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡จ๐Ÿ‡พ CyprusTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ฉ๐Ÿ‡ฐ DenmarkTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ซ๐Ÿ‡ฎ FinlandTax comparison๐Ÿ‡ฑ๐Ÿ‡ป Latvia vs ๐Ÿ‡ซ๐Ÿ‡ท FranceTax comparison