Latvia vs Germany
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.
🇩🇪 Germany — Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 Bundesländer apply federal income tax rates uniformly — 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.
Latvia vs Germany: Key Tax Differences (2026)
💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (20–31% vs 14–45%). 🇱🇻 Latvia is more favourable for high earners.
🛒 VAT/Sales Tax: Latvia has a higher consumption tax (12–21% vs 7–19%).
🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 29%), which can influence business location decisions.
📈 Capital Gains: 🇱🇻 Latvia taxes investment gains at a lower rate (20% vs 25%), benefiting investors.