In 2026, the minimum wage will increase, there will be greater support for families with children, lower value added tax (VAT) on some food products, and more expensive alcohol and tobacco. The portal LSM.lv summarises what else will change in 2026.
- Several natural resource tax rates will be increased – for sand, gravel, soil, etc. Meanwhile, from 2027, it is planned to increase the tax on peat fivefold.
- Several gambling tax rates will be increased.
- From 2026, excise duty on tobacco products, spirits, beer, and wine will increase. Excise duty will also grow for natural gas as a heating fuel and for gasoline.
- From July 1, as part of a one-year pilot project, VAT on bread, milk, poultry meat, and eggs will be reduced to 12%.
- The 5% VAT reduction will no longer apply to books in Russian. Books that are not published in Latvian, European Union or Organisation for Economic Co-operation and Development (OECD) member state or candidate state languages will be subject to the standard 21% VAT rate.
Minimum wage to grow
The minimum wage will increase from €740 to €780 per month next year, and the non-taxable minimum from €510 to €550 per month.
Postal service rates to increase
From 2026, the price of a standard letter will increase by 5 cents or 2% to €2.35 excluding VAT. The price of sending a registered domestic parcel weighing up to one kilogram will increase from €6.82 to €7.01. The price of sending an insured domestic parcel weighing up to one kilogram will increase from €6.87 to €8.39. Each additional kilogram will cost €1.25.
Passports and ID cards are getting costlier
From January 1, 2026, the state fee for issuing a passport within 10 working days will be €50, and within two working days – €75. The state fee for issuing a personal identification card or eID card within 10 working days will be €30, and within two working days – €45.
All state fee reductions for issuing personal identification documents will remain in place.
JÅ«rmala increases entry fee
The entry fee to Jūrmala will increase from €3 to €5 per day in 2026. The prices of long-term passes will approximately double – from €10 to €20 for a weekly pass, from €31 to €60 for a monthly pass, and from €55 to €100 for a three-month pass. A six-month pass will now cost €180 instead of the current €107, while a one-year pass will cost €270 instead of the current €180.
Increased support for families with children
From January 1, 2026, the one-time childbirth allowance will be €600 (previously €421.17). The childcare allowance for children up to the age of one and a half will be €298 per month (previously €171) and will be reviewed every two years. The period of parental allowance payments to parents of premature babies will also be extended. Parental allowance payments to working parents will also continue at 75% of the standard rate.
State-paid maintenance for children will also increase and the benefits for adopted families are set to rise.
Natural gas distribution tariff to drop
From January 1, 2026, the average tariff for natural gas distribution systems will decrease by 4.4%. The changes will vary for different user groups. For households that use natural gas for cooking, the average payment will increase by approximately €0.8 per month, excluding VAT, while for households that use natural gas for heating, the average payment will decrease by one euro per month, excluding VAT.
Electricity bills to increase for some
From January 1, 2026, the electricity distribution tariff will remain unchanged, but electricity bills will increase for more frequently used private connections, with a current strength of 16 to 25 amps and the “Basic” tariff plan.
For households with a single-phase connection, the monthly payment for capacity maintenance will increase by 20 cents to €1.26 per month, excluding value-added tax (VAT), depending on the selected capacity, while for households with a three-phase connection, it will increase from €1.92 to €3.50, excluding VAT.
The new owner will be responsible for the apartment’s debts
From January 1, 2026, Latvia will introduce the principle of “debt follows the apartment.” After purchasing an apartment, the new owner will have to pay the apartment’s debts for utilities, building management expenses, contributions to the reserve fund, and legal land use rights.
Debts will be transferred to the new owner for a period not exceeding three years prior to the purchase of the apartment. Older debts will remain the responsibility of the apartment owner who failed to make the relevant payments.
Public transport ticket prices to increase
From January 15 next year, ticket prices for regional public transport – buses and trains – will increase by an average of 7%. The increase will be minimal for longer journeys – up to €0.20, while in the electrified zone system, the fare will increase by €0.30.
The price increase will be minimal for longer journeys – up to €0.20. In the electrified zone system, the fare will increase by €0.30, while outside the zones it will increase by €0.20.
Travel discounts will remain unchanged, and season ticket prices will also remain in force.
Financial support for Ukrainian refugees to be reduced
From 2026, Ukrainian citizens will no longer receive employment start-up allowances amounting to one minimum monthly wage, which in 2025 was €740. The Ministry of the Interior has indicated that Ukrainian citizens are integrated into the Latvian labour market and have access to other general employment support mechanisms, so continuing the aforementioned support is no longer relevant.
Ukrainian citizens in Latvia will also no longer have free public transport – they will be subject to the same travel fees and conditions for discounts as Latvian citizens.
Ukrainian citizens will no longer be exempt from patient co-payments when receiving healthcare services. The costs of registering their animals and complying with mandatory health requirements will also no longer be covered.
These changes are taking place because the 2026 state budget allocates almost €25 million less to Ukrainian refugees than in 2025. The total amount will be €39.7 million.
Changes for pupils
In the next academic year, 9th-grade students will have to take two centralised exams instead of the previous three – in Latvian language and mathematics, while the foreign language exam will be organised as a monitoring test.
For high school students, the monitoring test in natural sciences will become a centralised exam in the next school year. Students will be required to take a centralised exam in chemistry, physics, or biology at the optimal level, or in natural sciences at the general level. The exam will not be required if the student has completed monitoring work in one of these subjects in previous academic years.
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