In the last two years, the average salary has increased in all three capitals of the Baltic states. However, the incomes of residents are determined not only by salary levels but also by differences in tax policies and state support for families.
Although incomes are growing fastest in Riga, a comparison of the three Baltic capitals shows that families living in the Latvian capital have the least amount of money left after covering basic expenses, while Tallinn has the most, according to an analysis by the financial institute "Swedbank."
Compared to data from the 2024 study, the fastest growth in income after taxes is noticeable in Tallinn (+23%), followed by Riga (+21%) and Vilnius (+16%). An important addition to family incomes is child benefits, which also vary significantly across the Baltic countries. For two children, a family in Latvia receives 100 euros per month, while in Estonia it is 160 euros, and in Lithuania, it is 259 euros. Moreover, in recent years, only Lithuania has increased these benefits.
When combining labor income and state support, a family of four, with two children and two parents earning the average salary in the capital, has a total income of 3190 euros per month in Riga, 3418 euros in Vilnius, and 4154 euros in Tallinn. This means that the budget of a family living in Tallinn is almost a third larger than that in Riga.
"The starting capital before making mandatory payments in the Baltic capitals still varies significantly. Mainly due to changes in labor tax policies, incomes in Riga have approached those in Vilnius in recent years; however, in Tallinn, they are still significantly higher - family incomes there are about 1000 euros more than in Riga," notes Evija Kropa, head of financial literacy at Swedbank.
