Lithuania Tax Calculator (2026)
Income tax rates and take-home pay for Lithuania
Lithuania Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | €0 - €126,532 | 20.0% |
| Higher Rate | €126,532+ | 32.0% |
Personal allowance: €8,964 (tapers above €12,456)
State Social Insurance (VSD) & Compulsory Health Insurance (PSD)
| Bracket | Income Range | Rate |
|---|---|---|
| Full Social Security | €0 - €126,532 | 19.5% |
| Health Insurance Only (above cap) | €126,532+ | 7.0% |
Key Facts
Tax Year
2025
Currency
EUR
Top Rate
32.0%
Brackets
2 brackets
Allowance
€8,964
Social Contributions
1 item
Assumptions
- · Tax-exempt amount (TEA/MNPD) tapering is simplified using the primary 0.49 rate. Note that above EUR 28,647.48, a different formula applies until the allowance reaches zero at EUR 34,370.64.
- · Social security contribution (19.5%) includes health insurance (6.98%).
- · Optional 2nd-tier pension accumulation contributions (typically 3%) are excluded as they are voluntary/opt-out.
- · Employer contributions (Guarantee Fund, Long-term Employment Fund, etc.) are excluded.
- · The Minimum Monthly Salary (MMS/MMA) for 2025 is EUR 1,038.
Frequently asked questions
How much income tax do I pay in Lithuania?
Lithuania has a progressive income tax system with two brackets: 20% on income up to EUR 126,532 and 32% on income above that threshold. You also get a tax-exempt allowance of EUR 8,964 that gradually reduces as your income increases, which lowers your overall tax burden.
What are the social security contributions in Lithuania?
As an employee in Lithuania, you pay 19.5% in combined state social insurance and compulsory health insurance contributions on your gross income up to EUR 126,532. Above that cap, the rate drops to 6.98% for health insurance only, which significantly reduces your total deductions on higher earnings.
What is the minimum wage in Lithuania for 2025?
The Minimum Monthly Salary (MMS) in Lithuania for 2025 is EUR 1,038. This applies to full-time employment and is the legal floor for wages in the country.
Do I get a personal tax allowance in Lithuania?
Yes, Lithuania provides a tax-exempt amount of EUR 8,964 that reduces your taxable income. This allowance starts to taper once your income exceeds EUR 12,456, decreasing at a rate of 49% of income above that threshold until it fully phases out.
Will my take-home pay change significantly if I earn above EUR 126,532?
Yes, earning above EUR 126,532 affects you in two ways: your income tax rate jumps from 20% to 32%, and your social security contribution rate drops from 19.5% to just 6.98%. The combination of these changes means your effective tax and contribution rate changes substantially at this income level.
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