Tax Overview in Lithuania

Lithuanian tax system at a glance

Lithuania is a euro-area EU member state. Taxes are run by the State Tax Inspectorate (VMI). Social insurance contributions are run by Sodra. The figures below are for the 2026 tax year. For 2026 personal income tax has three bands (20%, 25% and 32%) and the standard corporate rate is 17%.

This page is the summary. Each line points to the skill that holds the full rules:

• Personal income tax: lithuania-pit
• Corporate income tax: lt-corporate-income-tax
• VAT: lithuania-vat-return
• Payroll and social contributions: lt-payroll-social
• Residence, non-residents and withholding: lt-cross-border
• Transfer pricing: lt-transfer-pricing
• Company formation: lt-company-formation

Average wage (VDU) used for the 2026 bands. Several 2026 thresholds are multiples of VDU. Sodra gives 60 VDU for 2026 as EUR 138,729.00, so 1 VDU is EUR 2,312.15, 36 VDU is EUR 83,237.40 and 12 VDU is EUR 27,745.80.

• Tax year: for personal income tax, the calendar year (GPMĮ art. 7(1)). For corporate income tax, the tax year matches the calendar year unless the tax office allows a different 12-month period on request (PMĮ art. 6(1) and (2)). (GPMĮ; PMĮ)
• Currency: euro (EUR). Lithuanian tax laws state their amounts in euro.
• Tax authorities: State Tax Inspectorate (Valstybinė mokesčių inspekcija, VMI) for taxes; State Social Insurance Fund Board (Sodra) for social insurance. (VMI; Sodra)
• Who is resident (individuals): a person whose permanent home or centre of interests is in Lithuania, or who is in Lithuania for 183 days or more in the tax year, or for 280 days or more over two consecutive tax years with at least 90 days in one of them (GPMĮ art. 4(1)). (GPMĮ)
• Scope: a resident individual is taxed on income from Lithuanian and foreign sources (GPMĮ art. 5(2)). The exception in art. 5(3): a resident only under the 183-day or 280-day test who is not a Lithuanian citizen, and who is resident for the same period in a treaty country (confirmed to VMI by that country's competent authority), is taxed only on Lithuanian-source income. A non-resident is taxed on Lithuanian-source income listed in art. 5(4), such as interest and dividends, and on income of a fixed base in Lithuania. A Lithuanian company is taxed on income from Lithuanian and foreign sources (PMĮ art. 4(1)). See lt-cross-border. (GPMĮ; PMĮ)
• Personal income tax rates (2026): 20% on annual income up to 36 VDU (EUR 83,237.40); 25% on the part above 36 VDU up to 60 VDU (EUR 138,729); 32% on the part above 60 VDU (GPMĮ art. 6(1)). (GPMĮ; Sodra, 60 VDU for 2026)
• Other personal rates (2026): 15% on non-employment income (for example interest, rent and gains) up to 12 VDU (EUR 27,745.80) a year, with the art. 6(1) bands above that (art. 6(2)); a flat 15% on dividends and on gains on shares held more than 5 years outside an investment account (art. 6(6)); 20% on individual activity income up to EUR 42,500 a year, reduced by the art. 18-2 credit (art. 6(8)). (GPMĮ)
• Corporate income tax rate (2026): 17% of taxable profit (PMĮ art. 5(1)(1)). An entity whose income for the period is not above EUR 300,000 pays 0% for its first and second tax periods and 7% after that (art. 5(2)). The 0% rate applies only where the owners are all individuals and, for three consecutive periods including the first two, the entity is not suspended, liquidated or reorganised and no shares pass to new owners (art. 5(2)). Neither rate applies where linked entities (for example under the same owner holding more than 50%) together have income above EUR 300,000 (art. 5(3)); see lt-corporate-income-tax. (PMĮ)
• VAT: yes (pridėtinės vertės mokestis, PVM). Standard rate 21%; reduced rates 12% (for example accommodation and scheduled passenger transport) and 5% (for example reimbursed and prescription medicines, and printed and electronic books) (PVMĮ art. 2 and 19(3), (4)). A Lithuanian business with domestic supplies of no more than EUR 45,000 in the previous calendar year, and not expecting to pass it this year, need not register; VAT is charged from the month the limit is passed (PVMĮ art. 71(2)). (PVMĮ)
• Social insurance (2026, employees): employee 19.5% of pay (pension 8.72%, sickness 1.99%, maternity 1.81%, health 6.98%), plus 3% for those in second-pillar pension saving. Employer 1.77% on an open-ended contract in accident group I (unemployment 1.31%, accidents 0.14%, Guarantee Fund 0.16%, Long-term Employment Benefit Fund 0.16%). Unemployment insurance is 2.03% on a fixed-term contract; accident insurance is 0.49%, 0.7% or 1.4% for employers in groups II, III and IV (most employers are in group I). The employee's social insurance (VSD) contributions stop at 60 VDU a year (EUR 138,729); the ceiling does not apply to the employer's contributions or to health insurance (PSD). See lt-payroll-social. (Sodra, rates for employees; Sodra, employers)
• Personal income tax return: a resident files the annual return for 2026 by 1 May 2027 and pays the balance by the same date (GPMĮ art. 27(1) and (5)). (GPMĮ)
• Corporate income tax return: due by the 15th day of the 6th month after the tax period ends, so 15 June 2027 for a calendar 2026 year (PMĮ art. 51(2)). (PMĮ)
• VAT return: the tax period is a calendar month by default; the return is due by the 25th of the following month. For a quarterly period it is due by the 25th of the first month after the quarter (PVMĮ art. 85(1) and (1-1)). Who may use quarters: see lithuania-vat-return. (PVMĮ)

Sources

Source	URL	Read on
Law on Personal Income Tax (GPMĮ) No. IX-1007, consolidated version in force 2026-06-11 to 2026-12-31: art. 4, 5, 6, 7, 27	https://www.e-tar.lt/portal/lt/legalAct/TAR.C677663D2202/asr	2026-10-30
Law on Corporate Income Tax (PMĮ) No. IX-675, consolidated version in force 2026-05-19 to 2026-12-31: art. 4, 5, 6, 51	https://www.e-tar.lt/portal/lt/legalAct/TAR.A5ACBDA529A9/asr	2026-10-30
Law on Value Added Tax (PVMĮ) No. IX-751, consolidated version in force 2026-07-01 to 2026-12-31: art. 2, 19, 71, 85	https://www.e-tar.lt/portal/lt/legalAct/TAR.ED68997709F5/asr	2026-10-30
Sodra, contribution rates for employees (2026 section)	https://www.sodra.lt/imoku-tarifai/imoku-tarifai-taikomi-uz-samdomus-darbuotojus	2026-10-30
Sodra, employers: contribution ceiling (60 VDU in 2026 = EUR 138,729.00)	https://www.sodra.lt/imokos/idarbinimas-pranesimai-imokos-ir-tarifai?kam=draudejams	2026-10-30
State Tax Inspectorate (VMI)	https://www.vmi.lt/	2026-10-30

Not yet confirmed: the full lists of goods and services at the 12% and 5% VAT rates (see lithuania-vat-return); the law changes taking effect from 1 January 2027 (Law No. XV-488 on PMĮ, noted in lt-corporate-income-tax), which this page does not cover.