Lithuania Tax Calculator (2026)
Income tax rates and take-home pay for Lithuania
Advertisement
Lithuania Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Employment income up to EUR 126,532 | €0 - €126,532 | 20.0% |
| Employment income exceeding EUR 126,532 | €126,532+ | 32.0% |
Personal allowance: €8,200
Social security and health insurance contributions
| Bracket | Income Range | Rate |
|---|---|---|
| Up to EUR 126,532 | €0 - €126,532 | 19.5% |
| Above EUR 126,532 (health insurance only) | €126,532+ | 7.0% |
Key Facts
Tax Year
2025
Currency
EUR
Top Rate
32.0%
Brackets
2 brackets
Allowance
€8,200
Social Contributions
1 item
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
How much income tax do I pay on employment income in Lithuania?
Lithuania uses a progressive tax system with two brackets: you pay 20% on employment income up to EUR 126,532 and 32% on any amount above that threshold. You also benefit from a tax-exempt allowance (TEA) of approximately EUR 8,200 annually, which reduces your taxable income.
What are the social security contributions for employees in Lithuania?
Employee social security and health insurance contributions are 19.5% of your gross income up to EUR 126,532, then drop to 6.98% (health insurance only) on earnings above that amount. These contributions are deducted from your gross salary before calculating income tax.
Do I need to pay regional or state income taxes in Lithuania?
No, Lithuania does not have any subnational or regional income taxes. The national income tax rates and social contributions apply uniformly across the entire country, so your tax burden is the same whether you work in Vilnius or any other region.
What is the tax-exempt allowance (TEA) and how does it work?
The tax-exempt allowance is a deduction that reduces your taxable income, worth approximately EUR 8,200 annually for a typical mid-range salary. The actual TEA amount depends on your monthly income and can reach up to EUR 747 per month if your income is EUR 1,038 or less, then tapers as your income increases.
Are there any other taxes I should be aware of as an employee in Lithuania?
No inheritance tax, gift tax, or luxury tax applies to employment income in Lithuania. Employer-side social contributions and optional second-tier pension contributions do not affect your take-home pay, so the main deductions you will see are income tax and the mandatory employee social contributions.
At what income level does the higher 32% tax rate apply in Lithuania?
The higher tax rate of 32% applies to employment income exceeding EUR 126,532 per year. This is also the threshold where your social security contribution rate changes from 19.5% to 6.98%, which slightly offsets the higher income tax rate on earnings above this amount.
Advertisement
Other tax calculators
Compare Lithuania with another country
See side-by-side tax breakdowns for any two countries