Lithuania Tax Calculator (2026)
Income tax rates and take-home pay for Lithuania
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 if I work as an employee?
Lithuania uses a two-bracket income tax system for employment income. You pay 20% tax on earnings up to EUR 126,532, and 32% on anything above that threshold. However, you also receive a tax-exempt allowance (TEA) of approximately EUR 8,200 annually, which reduces your taxable income.
What are the social security contributions I need to pay as an employee in Lithuania?
Employee social security and health insurance contributions are 19.5% on income up to EUR 126,532, which includes a 6.98% health insurance component. Once your income exceeds EUR 126,532, the contribution rate drops to 6.98% (health insurance only) on the amount above that threshold. These contributions are deducted from your gross salary before you receive your take-home pay.
Is there regional or state income tax in Lithuania in addition to the national rate?
No, there is no subnational or regional income tax in Lithuania. The 20% and 32% brackets apply uniformly across the entire country, so your tax liability does not vary by region or municipality.
What is the tax-exempt allowance (TEA) and how does it work?
The tax-exempt allowance is a monthly benefit that reduces your taxable income. The maximum TEA is EUR 747 per month when your monthly income is EUR 1,038 or less, and it tapers as your income increases. For a representative mid-range salary, the annual TEA is approximately EUR 8,200, though the exact amount depends on how your income is distributed throughout the year.
Do I pay taxes on income above EUR 126,532 differently than below?
Yes, Lithuania applies a progressive system. Income up to EUR 126,532 is taxed at 20%, but income exceeding that threshold is taxed at 32%. Additionally, your social security contribution rate changes above EUR 126,532, dropping from 19.5% to 6.98% (health insurance only), which slightly offsets the higher income tax rate on earnings above the threshold.
Other tax calculators
Compare Lithuania with another country
See side-by-side tax breakdowns for any two countries