Car Tax in Latvia 2026 for EVs and Hybrids: What You Pay and What Is Exempt
Before you buy an EV or a hybrid, it pays to understand what it costs every year, not just on the showroom sticker. In Latvia the good news is simple: electric cars are among the lowest-taxed vehicles in the country — but hybrids are not automatically exempt. The difference comes down to CO2 emissions.
TL;DR: Latvia's main annual car tax in 2026 is the vehicle operation tax (TEN). For cars first registered after 2020, it's calculated from WLTP CO2 emissions: at ≤50 g/km the rate is €0, so pure EVs are effectively exempt (indicative, based on current law). Plug-in hybrids and petrol/diesel cars are taxed on their actual CO2 emissions — many PHEVs land in the lowest bands, but only a few reach €0. For company cars, the company light-vehicle tax (UVTN) is just ~€10/month for an EV versus €31–82/month for petrol/diesel (indicative, vid.gov.lv data 2026). Always check the exact amount for your specific car with the tax calculator — rates are indicative and depend on the individual vehicle.
See cars in stock — china-cars.online →→In stock in the EU · 2–7 day delivery · 3-year / 100,000 km EU warranty · CATL batteriesWhich taxes apply to a car in Latvia at all?
Several separate charges apply to a passenger car in Latvia. Don't mix them up:
- Vehicle operation tax (TEN) — the main annual tax for individuals. Paid before the roadworthiness test or registration actions. The amount depends on CO2 emissions (for newer cars) or engine/weight (for older ones).
- Company light-vehicle tax (UVTN) — a monthly tax on cars owned or held by a company and also used privately. It does not apply to privately owned cars.
- Registration and CSDD fees — one-off payments when registering a car (plates, registration certificate, state fee). EVs here often receive reduced or waived fees.
Key point: for an individual, TEN matters most. For a company using a car privately too, UVTN is added on top. An EV is advantageous in both cases.
In this article the amounts are indicative for 2026 and based on publicly available VID/CSDD information. Compute the exact result for a specific car with the calculator.
How are EVs taxed in 2026 vs petrol/diesel?
This is the EV's main advantage. TEN for cars first registered after 2020 is calculated from WLTP CO2 emissions — and the lowest band starts at zero:
| Car type | CO2 (WLTP) | TEN (per year, indicative) | |---|---|---| | Electric vehicle | 0 g/km | €0 — exempt | | Plug-in hybrid (low CO2) | usually ~20–50 g/km | often €0 if ≤50 g/km | | Plug-in hybrid (higher CO2) | >50 g/km | by band, higher | | Petrol/diesel (average) | ~120–160 g/km | tens of euros per year | | High-power / high-emission | >300 g/km | up to ~€756 (+€300 if >3500 cc) |
- A pure EV = 0 g/km → TEN €0. This is the statutory "≤50 g/km → €0" exemption (indicative, vid.gov.lv 2026).
- Petrol/diesel cars pay according to emissions — the bigger the engine and emissions, the higher the band, up to ~€756 per year for the top category, plus a €300 surcharge for engines over 3,500 cc.
- In 2026 the TEN rates are not increased — the burden stays at the previous level (indicative, skandimotors.lv / VID 2026).
See cars in stock — china-cars.online →→In stock in the EU · 2–7 day delivery · 3-year / 100,000 km EU warranty · CATL batteriesImportant for older cars: if a car was first registered in 2009–2020, the NEDC CO2 method applies; if before 2009, the calculation is based on engine capacity, power and gross weight. An EV has no emissions in principle, so it still lands in the €0 band.
How are plug-in hybrids and EREVs (range-extenders) taxed?
This is the most common misconception. A hybrid is not automatically exempt. TEN is applied by actual CO2 emissions, not by whether the car is called a "hybrid".
- A plug-in hybrid (PHEV) with a low declared CO2 (usually ~20–50 g/km WLTP) often lands in the lowest TEN band — in many cases €0 if emissions are ≤50 g/km. However, real emissions depend on the model.
- A regular (non-plug-in) hybrid usually emits more (90–130 g/km) and is taxed like any petrol car in the relevant band.
- An EREV (range-extender, e.g. AITO M5, Li Auto L6) — technically it drives like an EV but has a petrol generator. For tax, the decisive figure is the homologated CO2 value: an EREV with a low declared CO2 can land in a low band, but it's not a guaranteed "€0" like a pure EV. Before buying, check the model's CO2 data and run the calculator.
Definition — EREV: Extended-Range Electric Vehicle. The wheels are driven by an electric motor, but a petrol generator recharges the battery and extends range. Total range can reach ~1,000+ km (e.g. AITO M5 ~1,000 km, Li Auto L6 up to ~1,390 km CLTC), but for tax the declared CO2 value matters, not the total range.
Practical takeaway: if you want a guaranteed €0 TEN and the lowest UVTN, a pure EV is the safest choice. PHEVs and EREVs can be advantageous, but their tax depends on the specific model's CO2 — always check.
How is the amount calculated (CO2, engine, weight)?
The TEN calculation logic depends on the car's date of first registration:
| First registration | Calculation basis | EV result | |---|---|---| | After 31.12.2020 | WLTP CO2 emissions (g/km) | 0 g/km → €0 | | 2009–2020 | NEDC CO2 emissions (g/km) | 0 g/km → €0 | | Before 2009 | engine capacity + power + gross weight | no engine emissions → €0 |
Indicative "anchor" figures by band (petrol/diesel, skandimotors.lv / VID 2026):
- Engine capacity 1501–2000 cc → indicatively ~€27
- Engine power 56–92 kW → indicatively ~€27
- Gross weight 1501–1800 kg → indicatively ~€36
- Top emission band → up to ~€756, plus a €300 surcharge if the engine is >3,500 cc
Why is an EV always €0? Because in all three methods an EV "comes out" at zero: under WLTP/NEDC it has 0 g/km CO2, and even under the old engine/weight method it has no combustion engine producing emissions. So an EV lands in the "≤50 g/km → €0" exemption band.
All figures are indicative. Compute the exact amount for your VIN/model with the tax calculator, which uses current rates.
EV vs ICE: a rough annual tax comparison?
Let's add up the two main taxes — TEN (for an individual) and UVTN (for a company car). Figures indicative for 2026:
| | Electric vehicle | Petrol/diesel (average) | |---|---|---| | TEN (per year) | €0 | tens of € (depending on CO2/band) | | UVTN (per month, company car) | ~€10 | ~€31–82 (depending on engine) | | UVTN (per year, company car) | ~€120 | ~€372–984 | | Registration fees | often reduced | standard |
- For an individual the main difference is TEN €0 for an EV versus tens of euros per year for a petrol car.
- For a company the difference is stark: EV ~€10/mo vs ~€31–82/mo — that's a difference of several hundred euros per year in the EV's favour (indicative, vid.gov.lv 2026).
- In 2026 neither TEN nor UVTN rates are raised — so this advantage holds.
See cars in stock — china-cars.online →→In stock in the EU · 2–7 day delivery · 3-year / 100,000 km EU warranty · CATL batteriesBottom line: the annual tax burden on a company EV can be ~5–8 times lower than a comparable petrol car. For an individual, the main gain is TEN €0 plus reduced registration fees.
How do exemptions affect total cost of ownership (TCO)?
Tax is just one part of the total cost of ownership (TCO). An EV's advantage adds up from several sources:
- Taxes. TEN €0 + the lowest UVTN + reduced registration fees = indicatively hundreds of euros a year saved for a company car.
- "Fuel". Home charging ~€4/100 km versus ~€12/100 km on petrol — see the EV guide. At 15,000 km/year that's ~€1,100–1,200 saved.
- Servicing. No oil changes, fewer wearing parts — indicatively €200–400/year less.
- Up-front price. A lot is decided here. European premium EVs cost €52–64k; Chinese models with the same or better technology are ~22–34% cheaper.
Why it matters: if you compare only the sticker price, an ICE car can look cheaper. But once you add TEN €0, lower UVTN, cheaper charging and servicing, an EV's total cost of ownership over several years is often lower — and the more you drive, the bigger the gap.
If you're looking for a specific affordable EV, start with the Chinese EV overview. These models offer comparable or better technology at a substantially lower price.
Why Chinese EVs cost less (and how it ties into tax)?
The lower price comes not from quality but from manufacturing economics: huge scale, deep vertical integration (in-house CATL batteries, chips, software), gadget-style development cycles and fierce domestic competition with factory-direct sales. Because they are pure EVs, they automatically also get TEN €0 and the lowest UVTN — a lower price and a lower tax at the same time. china-cars.online is our trusted partner in Latvia: EU warranty 3 years / 100,000 km plus CATL battery coverage, cars in stock with 2–7 day delivery.
Comparison: available EVs and their tax profile
Prices shown incl. VAT (for a fair comparison with the European showroom price); china-cars.online prices are listed ex-VAT (+~20%). For all pure EVs — TEN €0 and UVTN ~€10/mo.
| Model | Technology | Price (~incl. VAT) | TEN | UVTN/mo | Direct EU rival | |---|---|---|---|---|---| | Deepal S07 | CATL, ~475 km WLTP | ~€34,700 | €0 | ~€10 | BMW iX3 ~€52k (~31%) | | Xiaomi SU7 Max | 101 kWh CATL, 800V, 673 hp | ~€38,800 | €0 | ~€10 | BMW i5 ~€64k (~33%) | | AVATR 06 | 800V, Huawei ADS | ~€45,000 | €0 | ~€10 | BMW i4 / Audi A6 e-tron | | AITO M5 | EREV, ~1,000 km total | ~€49,800 | by CO2* | ~€10–31* | premium SUV | | Li Auto L6 | EREV, up to 1,390 km CLTC | ~€49,800 | by CO2* | ~€10–31* | BMW X3 / Audi Q5 e-tron |
* EREV (M5, L6) tax depends on the homologated CO2 value — check the specific model with the calculator. For pure EVs (Deepal, SU7, AVATR) — €0 TEN and ~€10/mo UVTN.
Frequently asked questions
Is an EV exempt from tax in Latvia in 2026?
Effectively yes — the vehicle operation tax (TEN) for an EV is €0, because the "≤50 g/km CO2 → €0" rate applies to pure EVs (0 g/km). For a company car, UVTN is reduced to ~€10/month. Check the exact result with the calculator. (Indicative, based on current law.)
Is a plug-in hybrid exempt from TEN?
Not automatically. A PHEV is taxed on its actual CO2 emissions. Many PHEVs with a low declared CO2 (≤50 g/km WLTP) land in the €0 band, but models with higher CO2 pay more. Check the specific car's CO2 data.
How much is the operation tax for a petrol car?
It depends on CO2 emissions (for newer cars) or engine/weight (for older ones). Indicatively: 1501–2000 cc ~€27, weight 1501–1800 kg ~€36; the top band up to ~€756, plus €300 if the engine is >3,500 cc. These are indicative 2026 rates — compute the exact amount with the calculator.
How is TEN calculated — by CO2 or by engine?
It depends on the date of first registration: after 2020 — WLTP CO2; 2009–2020 — NEDC CO2; before 2009 — engine capacity + power + gross weight. An EV lands in the €0 band under all methods.
What is UVTN and does it apply to me?
The company light-vehicle tax is a monthly tax on cars owned by a company and also used privately. It does not apply to privately owned cars. The EV rate is ~€10/mo versus €31–82/mo for petrol/diesel.
Are car taxes going up in 2026?
According to publicly available information, TEN and UVTN rates are not increased in 2026 (indicative, VID / skandimotors.lv 2026). New exemptions took effect for socially protected groups and car dealers. Always verify the current rules with VID/CSDD.
Does an EV pay less for registration?
Usually yes — EVs often receive reduced or waived registration / CSDD fees. The exact fees are one-off and depend on the type of action; check the current CSDD price list.
Is an EREV (range-extender) taxed like an EV?
Not always. EREV tax (e.g. AITO M5, Li Auto L6) is determined by the homologated CO2 value, not total range. If the declared CO2 is low, the tax can be low, but it's not a guaranteed "€0" like a pure EV. Check the specific model's data with the calculator.
How much can you save on taxes overall with an EV?
For an individual — TEN €0 versus tens of euros per year for a petrol car. For a company — UVTN ~€120/year versus ~€372–984/year, i.e. a difference of several hundred euros a year, plus reduced registration fees. Adding cheaper charging and servicing, the total TCO saving is even larger.
Where can I find an affordable EV in Latvia?
Start with the Chinese EV overview — models with 800V and CATL batteries that cost ~22–34% less than EU rivals, with an EU warranty and in stock. For a deeper dive — the EV guide.
All tax, price and specification figures are indicative for 2026 and reflect publicly available VID/CSDD information — always compute the exact amount for a specific car with the tax calculator and verify current legislation. For a fuller 2026 tax explainer, see the car tax 2026 guide. autopase.lv is a partner of the china-cars.online project.
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