How to use Lithuania Income Tax Calculator
This Lithuania income tax calculator estimates your personal income tax (GPM — gyventojų pajamų mokestis) based on your annual gross salary and the tax year you select. Choose between 2023, 2024, 2025 and 2026 — Lithuania applies two rates to employment income: 20% up to a ceiling of 60× the average wage (VDU) and 32% on the part above it. Before the rate, a tax-exempt amount (NPD — neapmokestinamasis pajamų dydis) is deducted; it is highest for minimum-wage earners (€625/month in 2023, €747/month from 2024) and tapers to €0 as income rises. The calculator shows your GPM, effective rate, the 12.52% VSD and 6.98% PSD employee contributions and your take-home pay, and explains the rising 60×VDU ceiling and the tapering NPD.
- Select your tax year (2023, 2024, 2025, or 2026) from the dropdown.
- Enter your annual gross salary in euros (bruto atlyginimas before tax).
- Keep the filing status as Individual — Lithuania assesses each person separately.
- Click Calculate to see your 20% / 32% GPM, the NPD allowance and your effective rate.
- Review the VSD and PSD contributions and your estimated take-home (neto atlyginimas).
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How Lithuania’s GPM income tax works
Lithuania taxes employment income (GPM — gyventojų pajamų mokestis) at two rates: 20% on annual income up to a ceiling of 60× the average wage (VDU), and 32% on any part above that ceiling. The ceiling rises every year as the average wage grows — €101,094 in 2023, €114,162 in 2024 and €126,532 in 2025 — so the vast majority of salaries are taxed entirely at 20%. Before the rate is applied, the tax-exempt amount (NPD) is deducted from gross. The table below shows the standard 2025 calculation on a €30,000 gross salary, where the €8,964 NPD leaves a €21,036 base taxed at 20% for €4,207.20 of income tax — an effective GPM rate of about 14% rather than the headline 20%.
| Component | Rule | On €30,000 |
|---|---|---|
| Tax-exempt amount (NPD) | €8,964 annual max (2025) | −€8,964 |
| Taxable base (gross − NPD) | — | €21,036 |
| Income tax (GPM) | 20% of base | €4,207.20 |
| State social insurance (VSD) — employee | 12.52% of gross | €3,756.00 |
| Compulsory health insurance (PSD) — employee | 6.98% of gross | €2,094.00 |
| Take-home (neto) | ≈66.5% of gross | €19,942.80 |
The 60×VDU ceiling and the 32% rate
Unlike a flat tax, Lithuania has a second, higher rate of 32% that applies only to the part of your income above 60× the average wage (VDU). Because the ceiling is set from the official average wage, it is re-announced each year and rises with wages: €101,094 (2023), €114,162 (2024), €126,532 (2025). The 2026 ceiling had not been officially confirmed when this tool was last updated, so 2026 carries the 2025 figure forward (the 2026 minimum wage is already known to be €1,153/month). On a €150,000 salary in 2025 the first €126,532 of the taxable base is taxed at 20% and the remainder at 32%, giving €29,947.68 of GPM and a 32% marginal rate. The same ceiling also caps the VSD social-insurance contribution, so very high earners pay VSD only up to that ceiling while the 6.98% PSD continues on the whole salary.
The tapering NPD and how this calculator models it
The NPD (neapmokestinamasis pajamų dydis) is a monthly tax-free amount that is largest for minimum-wage earners and shrinks as income rises. For 2025 the maximum is €747/month (€8,964/year) for someone on the €1,038 minimum wage, then it tapers via NPD = 747 − 0.49 × (monthly income − 1,038), reaching €0 once monthly income hits €2,864.22 (about €34,370.67/year). The maximum was €625/month in 2023 and was raised to €747/month from 2024. Because the shared engine subtracts a fixed allowance, this calculator applies the full annual NPD — exact for salaries at or below one minimum wage, but it overstates the NPD (and so understates GPM) for higher salaries where the real NPD has tapered toward zero. Treat the GPM line as a lower bound for salaries above the minimum wage, and use the contributions breakdown for the parts that do not taper.
VSD and PSD: employee versus employer contributions
Two contributions are withheld from a Lithuanian employee’s gross pay: state social insurance, VSD (Valstybinis socialinis draudimas) at 12.52%, and compulsory health insurance, PSD (Privalomasis sveikatos draudimas) at 6.98% — about 19.5% of gross combined. The VSD is capped at the 60×VDU ceiling, after which only the uncapped 6.98% PSD continues. Separately, the employer pays its own social contributions (roughly 1.45%–2.71% plus small Guarantee Fund and Long-term Employment Fund levies) on top of your gross salary; these are never deducted from your pay, so this calculator documents but does not subtract them. Employees can also opt in to an extra 3% 2nd-tier pension accumulation (with a state top-up); because it is voluntary, this tool models only the standard 19.5% withholding.
Worked examples
Individual, €30,000, 2025
Inputs: €30,000 gross/yr
Result: €8,964 NPD · 20% on €21,036 = €4,207.20 GPM · contributions €5,850 · net €19,942.80
Individual, €30,000, 2023 vs 2024
Inputs: €30,000 gross/yr
Result: 20% on €22,500 = €4,500 (2023, €7,500 NPD) vs €4,207.20 (2024, €8,964 NPD) — €292.80 less once the NPD rose
Individual, €150,000, 2025 (touches 32%)
Inputs: €150,000 gross/yr
Result: €126,532 × 20% + €14,504 × 32% = €29,947.68 GPM · VSD capped €15,841.81 + PSD €10,470
Glossary
- GPM (gyventojų pajamų mokestis)
- Lithuanian personal income tax — 20% on employment income up to the 60×VDU ceiling and 32% above, charged after the NPD.
- NPD (neapmokestinamasis pajamų dydis)
- The tax-exempt amount deducted before GPM — up to €625/month in 2023 and €747/month from 2024, tapering to €0 as income rises.
- 60×VDU ceiling
- The annual income threshold (60× the average wage, VDU) above which GPM is 32% — €101,094 (2023), €114,162 (2024), €126,532 (2025).
- VSD (Valstybinis socialinis draudimas)
- Employee state social insurance — 12.52% of gross, capped at the 60×VDU ceiling, withheld through payroll.
- PSD (Privalomasis sveikatos draudimas)
- Employee compulsory health insurance — 6.98% of gross, uncapped, withheld through payroll.
- Bruto / neto atlyginimas
- Gross salary before deductions versus net (take-home) salary after GPM and the VSD/PSD contributions.
- Effective tax rate
- Total income tax divided by gross income — your true average rate, lower than 20% because of the NPD.
- Marginal tax rate
- The tax rate on your next euro of taxable income; in Lithuania it is 20% below the 60×VDU ceiling and 32% above it.
Related reading
Frequently Asked Questions
Why use Lithuania Income Tax Calculator?
- Applies Lithuania’s two-rate GPM — 20% up to the 60×VDU ceiling and 32% above — for the year you choose
- Subtracts the NPD tax-exempt amount: €7,500/year in 2023 and €8,964/year from 2024
- Breaks out the employee withholding: 12.52% state social insurance (VSD) and 6.98% health insurance (PSD)
- Caps the VSD at the 60×VDU ceiling (€101,094 / €114,162 / €126,532) while PSD stays uncapped
- Compares the four tax years so you can see the rising ceiling and the €625→€747 NPD increase
Common use cases
- Estimate your Lithuanian GPM and net pay before checking your atlyginimo lapelis (payslip)
- Convert a bruto (gross) job offer into an approximate neto (take-home) atlyginimas figure
- See how the tapering NPD reduces your relief as your salary rises above the minimumalus atlyginimas
- Check when your salary crosses the 60×VDU ceiling into the 32% band and the VSD cap
- Compare your approximate income tax for 2023 or 2024 when reviewing a prior-year salary in Lithuania
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