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🇱🇹 Lithuania Net Salary Calculator 2025
Lithuania's income tax (GPM) uses two rates: 20% up to approximately €125,340 per year (60× the average monthly wage), and 32% above that. Every employee also pays 8.72% into Sodra (the social insurance fund) for pension accumulation and 6.98% for compulsory health insurance, a total of 15.7% on all gross income with no cap. These contributions are NOT deductible from GPM, so income tax applies to full gross. The non-taxable personal amount (NPD) of up to €6,000 applies in full only for income up to €20,000 and phases out to zero at €40,000. At €35,000 gross, a Lithuanian employee pays around €5,495 in Sodra and health contributions and €6,700 in GPM income tax, taking home approximately €22,800. At €60,000, take-home is roughly €38,600.
Lithuania Income Tax Brackets
Brackets apply to taxable income after the €6,000 tax-free allowance.
| Income band | Rate |
|---|---|
| €0 – €119,340 | 20.00% |
| €119,340 and above | 32.00% |
Take-home pay examples
| Gross / year | Net / year | Net / month |
|---|---|---|
| €20,000 | €14,060 | €1,172 |
| €35,000 | €23,705 | €1,975 |
| €60,000 | €39,780 | €3,315 |
| €90,000 | €59,070 | €4,923 |
Employee figures only, standard deductions applied. Pension contributions, benefits in kind, and other personal factors are not included.
Data & assumptions
- Tax year
- 2026
- Last updated
- 2026-07-17
- Employment assumption
- Full-time employee, single filer
Figures are estimates based on standard deductions and do not account for pension contributions, benefits in kind, or individual circumstances. See our methodology for how these numbers are calculated.
Frequently Asked Questions
What is the NPD?
The NPD (neapmokestinamasis pajamų dydis) is a personal tax-free allowance of €6,000/year for income up to €20,000. For every euro above €20,000, the NPD reduces by €0.30, reaching zero at €40,000. Most Lithuanian employees earn between €20,000 and €40,000 gross, so the partial NPD affects the majority of the workforce. This calculator uses the maximum €6,000, which slightly overstates net pay.
What is Sodra?
Sodra is Lithuania's state social insurance fund. The 8.72% employee contribution covers pension accumulation (6.98%) and social insurance benefits. Separately, 1.74% goes to the compulsory health insurance (PSD) fund, though rates are often cited differently by source. Your employer also pays into Sodra, but those are additional employer costs not deducted from your pay.
Why are Sodra contributions not deductible?
Lithuania specifically does not allow employees to deduct Sodra and health insurance contributions from their GPM taxable income base. This means the effective total deduction rate (GPM 20% + Sodra 15.7%) applies cumulatively on gross, pushing total deductions for a €40,000 earner to around 33% of gross before the NPD benefit is factored in.
What is a good salary in Lithuania?
Vilnius is Lithuania's economic and tech hub; Kaunas and Klaipeda have smaller but growing labour markets. A single person in Vilnius typically needs €1,200–2,000 net per month, which corresponds to roughly €18,000–32,000 gross. The national median gross salary is around €18,000–22,000 per year. Lithuania's rapidly growing tech sector has pushed IT salaries much higher: software engineers in Vilnius commonly earn €30,000–70,000 gross. Lithuania's low cost of living compared to Western Europe makes it attractive to remote workers, and several international tech companies have established significant operations there since 2015.
How does Lithuanian take-home compare to Latvia and Estonia?
Lithuania's effective tax burden is the heaviest of the three Baltic states at most income levels. The key driver is that Lithuania's Sodra (8.72%) and health insurance (6.98%) total 15.7% and are NOT deductible from the GPM tax base, so income tax applies to the full gross salary. By contrast, Estonia's small 3.6% employee contributions are deductible, and Latvia's 10.5% VSAOI is deductible. At €35,000 gross, a Lithuanian employee takes home around €22,800 (65%), versus a Latvian employee at ~€18,600 (74%) and an Estonian employee at ~€26,000 (74%). For high earners, the gap is even more pronounced because the non-deductible Sodra applies at full gross.
Why are Sodra contributions not deductible from Lithuanian income tax?
Lithuania's GPM law applies income tax to the total amount of employment income received, which the tax authority interprets as the contractual gross salary before any contributions are removed. This contrasts with the approach in Austria, Germany, Latvia, and most of the EU, where employee social contributions reduce the taxable base. The practical result is that Lithuanian employees pay income tax on income that partially goes to the government via Sodra rather than into their pocket, raising the effective total deduction rate. Discussions about aligning with the European norm have occurred periodically, but no reform had been enacted as of 2025.