Estonia vs Latvia
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
🇪🇪 Estonia — Local Income Tax Supplement
Estonia's 79 local governments levy a local income tax supplement of 11.4% of taxable income (2024), collected alongside the national 20% income tax. Together these form the effective total income tax. Estonia's unique fully distributed profit taxation system means companies pay no corporate income tax on retained earnings — only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%–2.5% of assessed land value by municipalities.
🇱🇻 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.
Estonia vs Latvia: Key Tax Differences (2026)
💰 Income Tax: 🇱🇻 Latvia has a higher top income tax rate (22% vs 20–31%). 🇪🇪 Estonia is more favourable for high earners.
🛒 VAT/Sales Tax: Estonia has a higher consumption tax (9–24% vs 12–21%).
🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 22%), which can influence business location decisions.
📈 Capital Gains: 🇱🇻 Latvia taxes investment gains at a lower rate (20% vs 22%), benefiting investors.