Lithuania Tax Calculator (2026)
Income tax rates and take-home pay for Lithuania
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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 in Lithuania as an employee?
Lithuania has a progressive income tax system with two brackets: 20% on employment income up to EUR 126,532 and 32% on income above that threshold. You also receive a tax-exempt allowance (TEA) of approximately EUR 8,200 annually, which reduces your taxable income and lowers your overall tax burden.
What are social security contributions in Lithuania and do they reduce my take-home pay?
As an employee, you contribute 19.5% in social security and health insurance on income up to EUR 126,532, then only 6.98% (health insurance) on income above that threshold. These contributions are deducted from your gross salary and reduce your take-home pay directly.
What's the difference between the two income tax brackets in Lithuania?
The first bracket applies a 20% tax rate on employment income up to EUR 126,532, while the second bracket applies a higher 32% rate on any income exceeding that amount. This two-tier system means higher earners pay a significantly higher marginal rate on earnings above the threshold.
Do I pay regional or local income taxes in Lithuania?
No, Lithuania has no subnational income tax, so there are no additional regional or local taxes on top of the national income tax rate. Your tax liability is determined solely by the national brackets and allowances.
Are there any other taxes I should know about when working in Lithuania?
Lithuania has no inheritance tax, gift tax, or luxury tax on employment income, which simplifies the tax picture compared to some other countries. However, if you have self-employment income, business income, or investment income, different rules may apply, so it's worth consulting a local tax advisor for your specific situation.
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