Lithuania Personal Income Tax
Detailed personal income tax rates and rules for Lithuania in 2026.
Lithuania applies progressive income tax on employment income: 20% on income up to €101,094 and 32% on income above. A non-taxable income amount (NPD) of up to €625/month applies for lower earners, phased out for higher income. Capital and investment income is taxed at a flat 15% (20% for amounts exceeding 120 average salaries). Self-employment income is taxed at 15% for individual activity income.
| Income Range (EUR) | Tax Rate |
|---|---|
| €0 – €21K | 0% |
| €21K – €101K | 20% |
| €101K+ | 32% |
Filing Deadline
May 1 of the following year
Residency Rule
An individual is a Lithuanian tax resident if their permanent home is in Lithuania, their center of personal, social, or economic interests is in Lithuania, or they stay in Lithuania for 183 days or more in a tax period. Residents are taxed on worldwide income.
Additional Notes
Lithuania has a business license (verslo liudijimas) system for small-scale individual activities, providing simplified taxation. Individual activity certificates allow self-employed to deduct 30% of income as expenses without documentation. Lithuania is a significant fintech hub with over 100 licensed fintech companies.
How Lithuania Income Tax compares
Lithuania’s top personal income tax rate of 32% is the 88th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Europe’s regional average of 32%.
