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Latvia vs United States
Tax Rate Comparison

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

πŸ‡±πŸ‡» Latvia
vs
πŸ‡ΊπŸ‡Έ United States
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
20–31%
31% top; NATO spending affecting fiscal balance
No change
10–37%
TCJA provisions extended; no sunset
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
12–21%
21% standard maintained
No change
0–11%
No federal sales tax; state avg ~6–9%
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20% distributed profits; Pillar Two active
No change
21%
Federal flat; proposals to raise to 28% stalled
No change
Capital Gains Tax
Capital Gains Tax
20%
20% as income
No change
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
Social Security & Payroll
Social Security / Payroll
~35.09%
Contribution rates stable; pension II pillar growing
No change
~15.3%
SS wage base ~$180,000 est. 2026
No change
State, Regional & Local Taxes

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.

πŸ‡ΊπŸ‡Έ United States β€” State & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

⚠️ 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.

Latvia vs United States: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ΊπŸ‡Έ United States has a higher top income tax rate (20–31% vs 10–37%). πŸ‡±πŸ‡» Latvia is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Latvia has a higher consumption tax (12–21% vs 0–11%).

🏒 Corporate Tax: πŸ‡±πŸ‡» Latvia offers a lower corporate rate (20% vs 21%), which can influence business location decisions.

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