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Latvia vs Finland
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‡ซ๐Ÿ‡ฎ Finland
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
~44โ€“51.4%
Consolidation budget; high rates maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
12โ€“21%
21% standard maintained
No change
10โ€“25.5%
25.5% standard (raised 2024) maintained
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20% distributed profits; Pillar Two active
No change
20%
20% stable; R&D deduction enhanced
No change
Capital Gains Tax
Capital Gains Tax
20%
20% as income
No change
30โ€“34%
CGT rates unchanged
No change
Social Security & Payroll
Social Security / Payroll
~35.09%
Contribution rates stable; pension II pillar growing
No change
~36%
Austerity measures affecting some social contributions
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‡ซ๐Ÿ‡ฎ Finland โ€” Municipal Income Tax

Finland's 309 municipalities set their own income tax rates (municipal tax) ranging from ~16.5% to ~22.5%, averaging ~20%. This is added to the national progressive income tax. The church tax of 1%โ€“2.2% applies to members. No regional income tax. The 'solidarity tax' on high earners (2%) applies nationally. Municipalities also levy real estate tax on property owners. The welfare state is heavily funded by these high combined tax rates.

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 Finland: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ซ๐Ÿ‡ฎ Finland has a higher top income tax rate (20โ€“31% vs ~44โ€“51.4%). ๐Ÿ‡ฑ๐Ÿ‡ป Latvia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Finland has a higher consumption tax (12โ€“21% vs 10โ€“25.5%).

๐Ÿข Corporate Tax: Corporate rates are similar in both countries (20% vs 20%).

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฑ๐Ÿ‡ป Latvia taxes investment gains at a lower rate (20% vs 34%), benefiting investors.

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