WorldTax CompareAll Comparisons

United States vs Latvia
Tax Rate Comparison

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

🇺🇸 United States
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
10–37%
TCJA provisions extended; no sunset
No change
20–31%
31% top; NATO spending affecting fiscal balance
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
12–21%
21% standard maintained
No change

Corporate Tax Rate

Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
20%
20% distributed profits; Pillar Two active
No change

Capital Gains Tax

Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
20%
20% as income
No change

Social Security & Payroll

Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~35.09%
Contribution rates stable; pension II pillar growing
No change
State, Regional & Local Taxes

🇺🇸 United StatesState & 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.

🇱🇻 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 States vs Latvia: Key Tax Differences (2026)

💰 Income Tax: 🇺🇸 United States has a higher top income tax rate (10–37% vs 20–31%). 🇱🇻 Latvia is more favourable for high earners.

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

🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 21%), which can influence business location decisions.

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