Latvia vs Norway
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐ป 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%โ3% 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.
๐ณ๐ด Norway โ Municipal Taxes & Resource Rent
Norway's 15 counties and 356 municipalities set local income tax within a national band; max combined rate ~22%. Norway has unique resource rent taxes on petroleum (78%) and hydropower (67% from 2024). Wealth tax (formuesskatt) applies at 1%โ1.1% on net assets above NOK 1.7M. Dividends above a risk-free return are taxed at ~37.84% effective.
Latvia vs Norway: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ณ๐ด Norway has a higher top income tax rate (20โ31% vs 22โ47.4%). ๐ฑ๐ป Latvia is more favourable for high earners.
๐ VAT/Sales Tax: Norway has a higher consumption tax (12โ21% vs 12โ25%).
๐ข Corporate Tax: ๐ฑ๐ป Latvia offers a lower corporate rate (20% vs 22%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐ป Latvia taxes investment gains at a lower rate (20% vs 37.84%), benefiting investors.