IIN
IIN (Iedzīvotāju ienākuma nodoklis) is a tax applied to the income of individuals. It applies to salaries, business income, interest, royalties and other types of income defined by Latvian law.
This tax affects the final amount a person receives "in hand", so it is important to consider it when planning a budget and calculating salary.
What IIN means
IIN is one of the main taxes paid by an employee. The employer deducts it automatically with every payment. The tax rate depends on the type and amount of income and may change when applying:
- the non-taxable minimum,
- tax reliefs,
- allowances for dependents,
- special taxpayer categories.
Because of IIN, the actual net salary differs from the gross salary.
Where IIN is used
IIN is important in various financial situations:
- in salary calculations — determines how much a person receives "in hand";
- in the annual tax return — allows reclaiming overpaid tax or declaring additional income;
- when applying for tax benefits — for example, for dependents or education;
- in entrepreneurship — self-employed people also account for IIN;
- in lending — banks assess the client's income after taxes.
Understanding IIN helps avoid mistakes in calculations and plan personal finances more effectively.
IIN calculation example
For example, an employee has a gross salary of 1600 EUR per month.
After applying the non-taxable minimum, deductions and the income tax rate, the IIN amount is approximately 170-330 EUR depending on individual conditions.
As a result, the net salary is lower than the gross amount due to IIN and social contributions.
Quick IIN calculation
To avoid calculating everything manually, you can use the salary calculator on this website. It takes into account:
- the non-taxable minimum,
- the number of dependents,
- deductions,
- social contribution rates,
- the type of income.
The calculator will automatically show the IIN amount and the final income after taxes.