Lithuanian tax tables 2026
The personal income tax (GPM) scale with its 20%, 25% and 32% bands set in multiples of the average wage (VDU), the tax-exempt amount (NPD) formula, employee social insurance (VSD 12.52%) and health insurance (PSD 6.98%), employer contributions (1.77% and its parts, higher for fixed-term contracts), the 60 VDU contribution ceiling and the VDU used, the voluntary second pillar pension accumulation, the minimum wage, self-employed taxation and contributions, the business certificate, the VAT threshold and the residence rules for freelancers and new residents for 2026.
- 2026-01-01 to 2026-12-31
- EUR
Income tax
Personal income tax scale 2026 (gyventojų pajamų mokestis, GPM)
| Annual income from employment and other income taxed on the general scale (after the NPD and allowable deductions), residents | Rate |
|---|---|
| €0 to €83,237.40 | 20% |
| €83,237.40 to €138,729 | 25% |
| Over €138,729 | 32% |
Thresholds are 36 and 60 times the 2026 average wage (VDU) of €2,312.15 used for the social insurance base. The middle 25% band is new for 2026.
Source: e-seimas: Lietuvos Respublikos gyventojų pajamų mokesčio įstatymas Nr. IX-1007, suvestinė redakcija nuo 2026-06-11 iki 2026-12-31, 6 straipsnio 1 dalis; Seimas: Valstybės socialinių fondų biudžetų 2026 metų rodiklių patvirtinimo įstatymas Nr. XV-632, 4 straipsnis · retrieved 2026-11-11
Thresholds and other income 2026
| Item | Value |
|---|---|
| Average wage (VDU) for 2026 used for the thresholds and the contribution base | €2,312.15 |
| 25% band starts at (36 VDU, annual) | €83,237.40 |
| 32% band starts at (60 VDU, annual) | €138,729 |
| Non-employment income up to 12 VDU (€27,745.80) a year, e.g. rent, interest, capital gainsAbove this amount the general scale applies | 15% |
| Dividends (distributed profit) | 15% |
| Sickness, maternity, paternity, childcare and long-term employment benefits | 15% |
| Agricultural income up to 60 VDU a year (with a tax credit) | 15% |
| Agricultural income above 60 VDU a year | 20% |
Basis: Annual income of each type
Income taxed at the 15% non-employment rate and individual-activity income are counted first when the annual 20/25/32% bands are applied (GPM art. 6(11)).
Source: e-seimas: Lietuvos Respublikos gyventojų pajamų mokesčio įstatymas Nr. IX-1007, suvestinė redakcija nuo 2026-06-11 iki 2026-12-31, 6 straipsnio 1 dalis; Seimas: Valstybės socialinių fondų biudžetų 2026 metų rodiklių patvirtinimo įstatymas Nr. XV-632, 4 straipsnis · retrieved 2026-11-11
Tax-exempt amount (NPD) 2026
| Item | Value |
|---|---|
| Maximum monthly NPD (monthly employment income up to the minimum monthly wage) | €747 |
| Maximum annual NPD | €8,964 |
| Monthly formula | NPD = €747 − 0.49 × (monthly employment income − the minimum monthly wage in force on 1 January, €1,153 in 2026); not below zero |
| Annual formula | NPD = €8,964 − 0.49 × (annual income − 12 × the minimum monthly wage); not below zero |
| Taper rate | 49% |
| Monthly employment income at which the NPD reaches zero (computed) | €2,677.49 |
| Monthly NPD, 0–25% participation level or severe disability | €1,127 |
| Monthly NPD, 30–55% participation level or moderate or mild disability | €1,057 |
| Child or dependant allowance | None in 2026; from 2027 an additional NPD of €1,044 a year per child (GPM art. 20(11), version from 2027-01-01) |
Basis: Deducted from employment income only; applied monthly at one employer on request, or in the annual return
Non-residents get the NPD only in the annual return. The NPD does not apply to individual-activity or other non-employment income.
Source: e-seimas: Lietuvos Respublikos gyventojų pajamų mokesčio įstatymas Nr. IX-1007, suvestinė redakcija nuo 2026-06-11 iki 2026-12-31, 20 straipsnis (and the version from 2027-01-01, 20 straipsnio 11 dalis) · retrieved 2026-11-11
Employee contributions
Social and health insurance: employee contributions (VSD and PSD)
| Item | Value |
|---|---|
| Social insurance (VSD), total | 12.52% |
| of which pension insurance | 8.72% |
| of which sickness insurance | 1.99% |
| of which maternity insurance | 1.81% |
| Compulsory health insurance (PSD)Source: e-seimas.lrs.lt · retrieved 2026-11-11 | 6.98% |
| Total employee rate (VSD + PSD) | 19.5% |
| Second pillar pension accumulation, if the employee has joined (on top)Source: e-seimas.lrs.lt · retrieved 2026-11-11 | 3% |
Basis: Gross pay; VSD up to the annual ceiling of 60 VDU (€138,729), PSD on all pay
The employer withholds the employee contributions. Pay below the minimum monthly wage: contributions are due on the minimum monthly wage, with the employer paying on the difference (exceptions apply).
Source: Seimas: Valstybės socialinių fondų biudžetų 2026 metų rodiklių patvirtinimo įstatymas Nr. XV-632 (2025-12-09; TAR 2025-12-15 Nr. 2025-21465), 3 straipsnio 4 dalis · retrieved 2026-11-11
Contribution ceiling and average wage 2026
| Item | Value |
|---|---|
| Average wage (VDU) used for the 2026 contribution base | €2,312.15 |
| Annual ceiling for social insurance (VSD) | 60 VDU: pay above it attracts a 0% rate |
| Annual ceiling 2026 (60 × VDU, computed) | €138,729 |
| Health insurance (PSD) ceiling for employees | None: the ceiling excludes health insurance contributions |
| Ceiling for the self-employed | The previous year's 43 VDU, for VSD and PSD |
| Refund of contributions above the ceiling | Refunded to the employee by 31 May of the following year |
| Minimum contribution base: the minimum monthly wagePro rata to time worked; the employer pays both shares on any shortfallSource: lrs.lt · retrieved 2026-11-11 | €1,153 |
Basis: Calendar-year insured income from all employers
The same ceiling applies to employee and employer social insurance; once one insurance type reaches it, only the other types continue until they reach theirs.
Source: e-seimas: Lietuvos Respublikos valstybinio socialinio draudimo įstatymas Nr. I-1336, suvestinė redakcija nuo 2026-07-01 iki 2026-12-31, 2 straipsnio 16 dalis, 10 straipsnio 5, 7 ir 9 dalys; Seimas: įstatymas Nr. XV-632, 4 straipsnis · retrieved 2026-11-11
Second pillar pension accumulation (pensijų kaupimas)
| Item | Value |
|---|---|
| Participant's contribution (share of insured pay) | 3% |
| State contribution (share of the average gross wage of the year before last) | 1.5% |
| Participation | Voluntary from 1 January 2026: automatic enrolment was repealed; anyone with insured income below pension age may join by contract with a pension company |
| Suspension | Contributions may be suspended for 12 months at a time, any number of times |
| Extra contributions | The participant may pay more, and the employer may also contribute |
Basis: Insured pay (not raised to the minimum wage)
Voluntary third pillar pension savings are separate and not covered here.
Source: e-seimas: Lietuvos Respublikos pensijų kaupimo įstatymas Nr. IX-1691, suvestinė redakcija nuo 2026-01-01 iki 2026-12-31, 4, 6, 8 ir 13 straipsniai · retrieved 2026-11-11
Minimum wage 2026
| Item | Value |
|---|---|
| Minimum monthly wage (minimali mėnesinė alga, MMA), gross | €1,153 |
| Minimum hourly pay (minimalusis valandinis atlygis, MVA), gross | €7.05 |
Basis: Gross pay for full-time work (monthly) or per hour
Government Resolution No. 700 of 16 October 2025 sets both amounts for 2026 and recommends higher amounts in collective agreements.
Source: Lietuvos Respublikos Vyriausybės 2025 m. spalio 16 d. nutarimas Nr. 700 „Dėl 2026 metais taikomo minimaliojo darbo užmokesčio“ (TAR 2025-10-16 Nr. 2025-17211), text on the Seimas legal acts portal · retrieved 2026-11-11
Employer costs
Social insurance: employer contributions
| Item | Value |
|---|---|
| Unemployment insurance | 1.31% |
| Unemployment insurance, fixed-term contracts (1.55 times the rate) | 2.03% |
| Accidents at work and occupational diseases, group I | 0.14% |
| Accidents at work and occupational diseases, group II | 0.49% |
| Accidents at work and occupational diseases, group III | 0.7% |
| Accidents at work and occupational diseases, group IV | 1.4% |
| Accidents at work: national general rate | 0.16% |
| Guarantee Fund (Garantinis fondas)Source: e-seimas.lrs.lt · retrieved 2026-11-11 | 0.16% |
| Long-term Employment Benefits Fund (Ilgalaikio darbo išmokų fondas)Source: e-seimas.lrs.lt · retrieved 2026-11-11 | 0.16% |
| Total employer rate, open-ended contract, accident group I (computed)Source: e-seimas.lrs.lt · retrieved 2026-11-11 | 1.77% |
| Total employer rate, fixed-term contract, accident group I (computed)Source: e-seimas.lrs.lt · retrieved 2026-11-11 | 2.49% |
Basis: Gross pay up to the annual ceiling of 60 VDU (€138,729); the two fund contributions on the full social insurance base
Budget institutions and the Bank of Lithuania pay neither fund contribution. Each employer is assigned to one of four accident-rate groups.
Source: Seimas: Valstybės socialinių fondų biudžetų 2026 metų rodiklių patvirtinimo įstatymas Nr. XV-632 (2025-12-09; TAR 2025-12-15 Nr. 2025-21465), 3 straipsnio 1–3 dalys; e-seimas: Valstybinio socialinio draudimo įstatymas Nr. I-1336, 8 straipsnio 2 dalis · retrieved 2026-11-11
Other rates
Freelancers, the self-employed and new residents
| Item | Value |
|---|---|
| Self-employed income tax (individuali veikla) | 20% on annual taxable profit up to €42,500, reduced by a tax credit (effective 5% up to €20,000, rising to 20% at €42,500); profit above €42,500 on the general 20/25/32% scale |
| Tax credit rate on profit up to €20,000 | 15% |
| Self-employed social insurance (pension, sickness, maternity)Source: e-seimas.lrs.lt · retrieved 2026-11-11 | 12.52% |
| Self-employed health insuranceSource: e-seimas.lrs.lt · retrieved 2026-11-11 | 6.98% |
| Contribution base: share of taxable profitSource: e-seimas.lrs.lt · retrieved 2026-11-11 | 90% |
| Business certificate (verslo liudijimas) | Fixed income tax set by each municipality for listed activities, on income up to €50,000 a year (above it the general scale); pension insurance and health insurance at 8.72% and 6.98% of the minimum monthly wage each month |
| VAT registration threshold: domestic supplies in the previous or current calendar yearSource: e-seimas.lrs.lt · retrieved 2026-11-11 | €45,000 |
| Startup residence permitSource: e-seimas.lrs.lt · retrieved 2026-11-11 | Yes: temporary residence permit for 2 years (replaceable for 3 years) to found and run an innovative startup, endorsed by the institution authorised by the Minister of the Economy and Innovation; the company must be set up within 120 days; no income threshold or special tax treatment in the law |
| Remote-work (digital-nomad) permitSource: e-seimas.lrs.lt · retrieved 2026-11-11 | None: the Law on the Legal Status of Aliens has no residence ground for remote work for a foreign employer; working remotely from abroad for a Lithuanian employer needs no work permit; e-residency gives access to e-services only, not residence |
| Inbound or expat tax regime | None: new residents are taxed on the normal scale with the same NPD; residence from 183 days in a tax period |
| Application authoritySource: e-seimas.lrs.lt · retrieved 2026-11-11 | Residence permits: Migration Department (Migracijos departamentas); tax registration: State Tax Inspectorate (VMI); contributions: Sodra (State Social Insurance Fund Board) |
Self-employed contribution rules and the individual-activity tax credit follow.
Source: e-seimas: Lietuvos Respublikos gyventojų pajamų mokesčio įstatymas Nr. IX-1007, suvestinė redakcija nuo 2026-06-11 iki 2026-12-31, 6 straipsnio 8 dalis, 18 straipsnio 12 dalis, 18-2 straipsnis · retrieved 2026-11-11
Self-employed social and health insurance 2026
| Item | Value |
|---|---|
| Contribution base: share of annual taxable individual-activity profit | 90% |
| Social insurance, total | 12.52% |
| of which pension insurance | 8.72% |
| of which sickness insurance | 1.99% |
| of which maternity insurance | 1.81% |
| Unemployment insurance (owners of individual enterprises, small partnership members, general partners only) | 1.31% |
| Health insurance (PSD) | 6.98% |
| Annual ceiling | The previous year's 43 VDU |
| Minimum health insurance | At least 6.98% of 12 minimum monthly wages a year |
| Second pillar pension accumulation, if joined (on top)Source: e-seimas.lrs.lt · retrieved 2026-11-11 | 3% |
Basis: 90% of taxable profit (before social and health insurance contributions), up to the ceiling
Business-certificate holders pay pension and health insurance on the minimum monthly wage instead.
Individual activity income tax and credit 2026
| Item | Value |
|---|---|
| Tax rate on taxable profit up to the cap | 20% |
| Cap on taxable profit for the 20% rate and the credit | €42,500 |
| Full credit up to | €20,000 |
| Credit rate up to that amount | 15% |
| Credit above that amount | Profit × (0.15 − 2/300,000 × (profit − 20,000)) |
| Effective rate (computed) | 5% up to €20,000, 15% at €35,000, 20% at €42,500 |
| Optional deemed expenses instead of actual costs (share of receipts) | 30% |
Basis: Annual taxable individual-activity profit (receipts minus allowable expenses or the 30% deemed expenses)
The deemed-expense option is not available where the income comes from a person linked by employment.
Source: e-seimas: Lietuvos Respublikos gyventojų pajamų mokesčio įstatymas Nr. IX-1007, suvestinė redakcija nuo 2026-06-11 iki 2026-12-31, 6 straipsnio 8 dalis, 18 straipsnio 12 dalis, 18-2 straipsnis · retrieved 2026-11-11
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Official sources
- e-seimas: Lietuvos Respublikos gyventojų pajamų mokesčio įstatymas Nr. IX-1007 (suvestinė redakcija nuo 2026-06-11 iki 2026-12-31) · retrieved 2026-11-11
- Seimas: Valstybės socialinių fondų biudžetų 2026 metų rodiklių patvirtinimo įstatymas Nr. XV-632 (2025-12-09; TAR 2025-12-15 Nr. 2025-21465) · retrieved 2026-11-11
- Seimas press release: Seimas enacted new personal income tax rate, separate taxation for farmers, additional tax-exempt amount of income (26 June 2025) · retrieved 2026-11-11
- e-seimas: Lietuvos Respublikos valstybinio socialinio draudimo įstatymas Nr. I-1336 (suvestinė redakcija nuo 2026-07-01 iki 2026-12-31) · retrieved 2026-11-11
- e-seimas: Lietuvos Respublikos sveikatos draudimo įstatymas Nr. I-1343 (suvestinė redakcija nuo 2026-09-01 iki 2026-12-31) · retrieved 2026-11-11
- e-seimas: Garantijų darbuotojams jų darbdaviui tapus nemokiam ir ilgalaikio darbo išmokų įstatymas Nr. XII-2604 (suvestinė redakcija nuo 2026-01-01) · retrieved 2026-11-11
- e-seimas: Lietuvos Respublikos pensijų kaupimo įstatymas Nr. IX-1691 (suvestinė redakcija nuo 2026-01-01 iki 2026-12-31) · retrieved 2026-11-11
- Vyriausybės 2025-10-16 nutarimas Nr. 700 „Dėl 2026 metais taikomo minimaliojo darbo užmokesčio“ · retrieved 2026-11-11
- e-seimas: Lietuvos Respublikos pridėtinės vertės mokesčio įstatymas Nr. IX-751 (suvestinė redakcija nuo 2026-07-01 iki 2026-12-31) · retrieved 2026-11-11
- e-seimas: Lietuvos Respublikos įstatymas dėl užsieniečių teisinės padėties Nr. IX-2206 (suvestinė redakcija nuo 2026-11-01 iki 2026-12-31) · retrieved 2026-11-11
How every figure is checked: methodology. All datasets: CalcBloc data.