Lithuanian Income Tax Bands in 2026
From 2026 employment income meets three GPM rates, set in multiples of the average wage (VDU):
| Annual income | GPM rate |
|---|---|
| up to €83,237.40 (36 VDU) | 20% |
| €83,237.40 to €138,729 (60 VDU) | 25% |
| above €138,729 | 32% |
Most salaries stay inside the 20% band. The 25% and 32% rates affect only pay of roughly €6,936.45 a month and above.
The NPD Tax Free Amount
The neapmokestinamasis pajamų dydis (NPD) is the slice of pay that escapes income tax. From 2026 there is one formula: €747 a month while pay is at or below the minimum wage of €1,153, then reduced by 0.49 for each euro above it.
NPD = 747 − 0.49 × (monthly pay − 1153)
It reaches zero at about €2,677.49 a month. The calculator applies the yearly version, €8,964 less 0.49 of income above €13,836. On €2,400 a month the NPD is worth €1,631.64 a year.
Sodra Social and Health Insurance
| Contribution | Employee rate |
|---|---|
| Social insurance (VSD: pension, sickness, maternity) | 12.52% |
| Compulsory health insurance (PSD) | 6.98% |
| II pillar pension accumulation (optional) | 3% |
Together that is 19.50%, or 22.50% with the second pillar. Social insurance stops once yearly pay passes €138,729. From 2026 joining the II pillar is voluntary; existing members may stay, pause or leave. Unlike most countries, these contributions do not reduce income tax in Lithuania.
Worked Example on 2,400 Euros a Month
- Yearly gross: €28,800
- NPD: €8,964 − 0.49 × (€28,800 − €13,836) = €1,631.64
- Income tax: (€28,800 − €1,631.64) × 20% = €5,433.67
- Social insurance: 12.52% = €3,605.76; health insurance 6.98% = €2,010.24
- Net pay: €17,750.33 a year, €1,479.19 a month
With the second pillar the net falls to €1,407.19 a month. Deductions take 38.4% of gross without it.
Lithuanian Net Salary at Six Levels
| Gross a year | Gross a month | GPM | Sodra | Net a month |
|---|---|---|---|---|
| €14,400 | €1,200 | €1,142.47 | €2,808 | €870.79 |
| €20,400 | €1,700 | €2,930.47 | €3,978 | €1,124.29 |
| €28,800 | €2,400 | €5,433.67 | €5,616 | €1,479.19 |
| €36,000 | €3,000 | €7,200 | €7,020 | €1,815 |
| €48,000 | €4,000 | €9,600 | €9,360 | €2,420 |
| €90,000 | €7,500 | €18,338.13 | €17,550 | €4,509.32 |
At the minimum wage of €1,153 a month the full NPD applies and net pay is €846.97 a month. Between the minimum wage and about €2,677 a month the shrinking NPD adds 9.8 cents of tax for each extra euro (0.49 × 20%), which is why the effective rate climbs fastest in that range.
What Counts as Employment Income
- Taxed: salary, bonuses, holiday pay, overtime and benefits in kind.
- Tax free within limits: business trip allowances set by law.
- Refundable later: some personal costs set by law can be claimed back on the yearly income declaration.
High Salaries and the Contribution Cap
Above €83,237.40 a year the 25% rate starts, and above €138,729 social insurance stops while health insurance carries on. On €150,000 gross, income tax comes to €34,127.10 and Sodra contributions to €27,838.87, leaving €88,034.03 for the year.
The higher bands are set on annual income, and the annual income declaration settles any difference between what payroll withheld and the tax due for the year. People with large bonuses or several employers are the ones most likely to see a top up or a refund.
Monthly Payslip and Holiday Pay
Tax is worked on each month's pay as a whole. The NPD is normally applied at one job only, the one where you ask for it, and a second job is taxed without it. Holiday pay is taxed with the month it belongs to, and a bonus raises that month's pay, which can shrink the NPD for that month even though the year comes out close to the figures here.
Assumptions and Sources for Lithuania
- Resident employee for all of 2026, one employer, no disability, no extra NPD.
- NPD worked on yearly income; payroll uses the monthly formula, which matches for a steady salary.
- II pillar only when ticked; no refunds claimed on the annual return.
Sources: VMI on tax law changes from 1 January 2026 and Sodra's 2026 rates for employers. Rates for 2026. Compare with the Latvia Gross to Net Calculator.
Frequently Asked Questions
How much is 2,400 euros gross in Lithuania after tax?
€1,479.19 a month in 2026 without the II pillar, €1,407.19 with it.
Do Sodra contributions lower income tax?
No. In Lithuania GPM is charged on gross pay less the NPD; social and health insurance are not deducted first.
What are the GPM rates in 2026?
20% up to €83,237.40 a year, 25% up to €138,729 and 32% above.
What is the maximum NPD in 2026?
€747 a month, for pay at or below the €1,153 minimum wage.
How much does the employee pay to Sodra?
19.50% of gross pay, or 22.50% for II pillar members.
Is the II pillar compulsory?
No. From 2026 membership is voluntary, and members can pause or stop contributions.
What is the VDU for 2026?
The 2026 tax limits of €83,237.40 (36 VDU) and €138,729 (60 VDU) imply a VDU of €2,312.15 a month. It also sets the Sodra cap.