Lithuania Tax Calculator (2026)

Assumptions

• · Representative resident employee model: single, no dependents, age 35, full-year employment.
• · Employment-related income is subject to 20% PIT up to EUR 126,532 and 32% above that threshold.
• · Employee social security contributions are 19.5% (including 6.98% health insurance) up to EUR 126,532, then 6.98% above.
• · Monthly tax-exempt allowance (TEA) is calculated based on employment income, with a maximum EUR 747/month when income ≤ EUR 1,038/month, then tapered.
• · TEA simplification: modeled as an annual allowance of approximately EUR 8,200 for representative mid-range salary; actual TEA depends on monthly income distribution.
• · Employer-side social contributions (1.45–2.71% for regular contracts, 0.16% Guarantee Fund, 0.16% Long-term Employment Fund) are excluded as they do not reduce employee take-home pay.
• · Optional second-tier pension contributions (3% + 1.5% state match) are excluded as voluntary.
• · No inheritance tax, gift tax, or luxury tax applied to employment income.
• · No subnational income tax in Lithuania.

Frequently asked questions