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United Kingdom vs Latvia
Tax Rate Comparison

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

🇬🇧 United Kingdom
vs
🇱🇻 Latvia
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–45%
Thresholds remain frozen; fiscal drag continuing
No change
20–31%
31% top; NATO spending affecting fiscal balance
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–20%
Standard 20% maintained
No change
12–21%
21% standard maintained
No change

Corporate Tax Rate

Corporate Tax Rate
19–25%
25% main rate; possible future reform discussions
No change
20%
20% distributed profits; Pillar Two active
No change

Capital Gains Tax

Capital Gains Tax
18–24%
Post-Oct 2024 rates in full effect
No change
20%
20% as income
No change

Social Security & Payroll

Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
~35.09%
Contribution rates stable; pension II pillar growing
No change
State, Regional & Local Taxes

🇬🇧 United KingdomDevolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically £1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

🇱🇻 LatviaMunicipal 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.

⚠️ 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.

United Kingdom vs Latvia: Key Tax Differences (2026)

💰 Income Tax: 🇬🇧 United Kingdom has a higher top income tax rate (0–45% vs 20–31%). 🇱🇻 Latvia is more favourable for high earners.

🛒 VAT/Sales Tax: Latvia has a higher consumption tax (0–20% vs 12–21%).

🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇱🇻 Latvia taxes investment gains at a lower rate (20% vs 24%), benefiting investors.

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All 🇬🇧 United Kingdom comparisons →All 🇱🇻 Latvia comparisons →