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 November 2026.
As an employee
Income tax: 20% / 25% / 32% (25% above ~36 average wages, 32% above ~60). Social contributions: 19.5% employee (incl. health).
The 2026 reform added a 25% middle band and now taxes most income types together. Rates as of November 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 profit effectively 5-20% up to €42,500 (a tax credit tapers as profit grows), the regular 20/25/32% bands above; 30% of income can be deducted as deemed expenses. Social contributions: 19.5% (incl. health) on 90% of taxable profit, base capped at 43 average wages (€99,422 in 2026).
Small freelance incomes are taxed remarkably lightly through the credit mechanism. Rates as of November 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% (kept by the 2026 reform, taxed separately).
Fintech-friendly administration; rates drifting up modestly to fund defence. Rates as of November 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.