WorldTax Compare← All Comparisons

Germany vs Latvia
Tax Rate Comparison

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

πŸ‡©πŸ‡ͺ Germany
vs
πŸ‡±πŸ‡» Latvia
Tax Year:

πŸ’° Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
20–31%
31% top; NATO spending affecting fiscal balance
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
12–21%
21% standard maintained
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
20%
20% distributed profits; Pillar Two active
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
20%
20% as income
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~35.09%
Contribution rates stable; pension II pillar growing
No change
State, Regional & Local Taxes

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

πŸ‡±πŸ‡» Latvia β€” Municipal Income Tax

Latvia's 119 municipalities levy a local income tax portion β€” 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamā Δ«paΕ‘uma 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.

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

Germany vs Latvia: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (14–45% vs 20–31%). πŸ‡±πŸ‡» Latvia is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Latvia has a higher consumption tax (7–19% vs 12–21%).

🏒 Corporate Tax: πŸ‡±πŸ‡» Latvia offers a lower corporate rate (20% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡±πŸ‡» Latvia taxes investment gains at a lower rate (20% vs 25%), benefiting investors.

Related Comparisons

πŸ‡¦πŸ‡Ί Australia vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡¦πŸ‡Ή Austria vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡§πŸ‡­ Bahrain vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡§πŸ‡ͺ Belgium vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡§πŸ‡· Brazil vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡§πŸ‡¬ Bulgaria vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡¨πŸ‡¦ Canada vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡¨πŸ‡¦ Canada vs πŸ‡±πŸ‡» LatviaTax comparisonπŸ‡¨πŸ‡³ China vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡­πŸ‡· Croatia vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡¨πŸ‡Ύ Cyprus vs πŸ‡©πŸ‡ͺ GermanyTax comparisonπŸ‡¨πŸ‡Ώ Czech Republic vs πŸ‡©πŸ‡ͺ GermanyTax comparison