How much you pay in Lithuania depends on how you earn, so here are all three pictures: an employment contract, self-employment and running your own company. Real headline rates, verified July 2026.
As an employee
Income tax: 20% / 32% (above ~60 average wages). Social contributions: 19.5% employee (incl. health).
The 2026 defence-funding package moved several rates; double-check current brackets. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a freelancer or sole trader
Income tax: Individual-activity income effectively 5-15% (a tax credit tapers as profit grows). Social contributions: ~19.5-28.3% on a reduced base.
Small freelance incomes are taxed remarkably lightly through the credit mechanism. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a company owner
CIT 17% (raised from 16% in January 2026; reduced small-company rate exists). Dividends 15% (check the 2026 package for pending changes).
Fintech-friendly administration; rates drifting up modestly to fund defence. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
Two rules that apply everywhere
Tax residence usually follows your life, not your paperwork: spend 183+ days in Lithuania (or keep your centre of vital interests there) and you generally owe taxes there regardless of visa or company setup.
Special regimes and treaty rules can change these numbers dramatically in both directions. This page is educational information, not tax advice: before you commit to a structure, have a licensed Lithuania tax advisor confirm the current rules for your specific case.