Lithuania Income Tax Calculator: Net Salary and Self-Employed

Using the calculator

1. Choose your income: a salary, or individual activity under a certificate (individuali veikla pagal pažymą) — Lithuania's way of working for yourself.
2. For a salary, enter the gross monthly pay and the tax-free amount that applies to you (the standard one, a reduced working capacity, or none at this job).
3. For individual activity, enter the yearly revenue and choose the 30% presumed costs or your real costs.

The result shows each tax and contribution and the net salary a month, or the tax and contributions of the activity a year.

Tax on a salary in 2026

From 2026 Lithuania taxes employment income progressively: 20% up to 36 average wages a year (83,237.40 €), 25% up to 60 (138,729 €) and 32% above. The employer withholds 20% every month on the gross salary less the tax-free amount (NPD): 747 € a month up to the minimum wage of 1,153 €, then 49 cents less for every euro above it, nothing from 2,677.49 €. Whatever a higher salary owes at 25% or 32% is paid with the annual return by 1 May of the next year. The employee also pays 12.52% social insurance (VSD) — up to 60 average wages a year — and 6.98% health insurance (PSD); 3% more for those in the voluntary II-pillar pension fund. The employer adds about 1.77%. A gross salary of 2,000 € leaves 1,276.39 € net; the minimum wage, 846.96 €.

Individual activity (self-employed)

The self-employed pay tax on the revenue less the real costs or, without receipts, less 30% presumed costs. The rate is 20%, but a tax credit brings it down to an effective 5% on taxable income up to 20,000 €, rising evenly to 20% at 42,500 €; above that the income is taxed by the yearly bands of 20%, 25% and 32%. Social insurance (12.52%) and health insurance (6.98%) are due on 90% of the taxable income, at most 43 average wages a year (99,422.45 €); someone not insured through a job pays at least 80.48 € of health insurance every month. A first individual activity pays no social insurance in its first calendar year.

What the calculator leaves out

The business certificate (a fixed tax set by each municipality), VAT, the II-pillar pension of the self-employed, several employers, benefits and dividends are not calculated. A foreigner who worked in Lithuania part of the year, or did not ask the employer to apply the tax-free amount, can get the difference back with the annual return; a non-resident gets the tax-free amount only that way. A lawyer in Lithuania can check what applies to you, and whether your residence permit allows self-employment. This is legal information, not advice.