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
What is the income tax rate in Lithuania?
Lithuania has a progressive two-bracket system: employment income up to EUR 126,532 is taxed at 20%, and income above that threshold is taxed at 32%. Additionally, you receive a tax-exempt allowance (TEA) of approximately EUR 8,200 annually, which reduces your taxable income.
How much do I pay in social contributions as an employee in Lithuania?
Employee social security and health insurance contributions are 19.5% on income up to EUR 126,532, then drop to 6.98% (health insurance only) on income above that threshold. These contributions are deducted from your gross salary and are not tax-deductible.
What is the tax-exempt allowance (TEA) in Lithuania?
The tax-exempt allowance is a monthly benefit that reduces your taxable income; it's calculated based on your employment income with a maximum of EUR 747 per month for lower earners, then gradually tapers as income increases. For a representative mid-range salary, this works out to approximately EUR 8,200 annually, making it a meaningful relief from income tax.
Is Lithuania's income tax the same across all regions?
Yes, Lithuania has no subnational or regional income tax variations. The same national tax brackets and rates apply regardless of where you live or work within the country.
What other taxes should I be aware of when working in Lithuania?
Lithuania does not have inheritance tax, gift tax, or luxury tax on employment income. Employer-side social contributions exist but do not affect your take-home pay, and optional second-tier pension contributions are voluntary, so your main tax burden comes from the income tax and employee social contributions outlined above.
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