Work out your net ("on hand") pay from a gross salary โ including GPM income tax, Sodra contributions and the NPD tax-free allowance.
Your take-home pay
How Your Salary Is Taxed in Lithuania
Lithuanian employers withhold everything at source, so your salary arrives net. Three things come out of your gross pay:
- GPM โ personal income tax, charged on your gross pay minus the NPD allowance.
- Sodra โ social and health insurance contributions, charged on the full gross.
- Pension accumulation โ an optional extra 3% if you joined Pillar II.
GPM income tax rates (2026)
Lithuania uses a three-tier progressive system:
| Annual income | Rate |
|---|---|
| Up to โฌ83,237 | 20% |
| โฌ83,237 โ โฌ138,729 | 25% |
| Above โฌ138,729 | 32% |
Dividends are taxed separately at a flat 15%.
Sodra contributions
| Paid by | Rate | Covers |
|---|---|---|
| Employee | 19.5% | Social insurance 12.52% + health insurance 6.98% |
| Employer | 1.77% | On top of gross (2.4899999999999998% for fixed-term contracts) |
| Employee (optional) | +3% | Pillar II pension accumulation |
NPD โ the tax-free allowance
The NPD (neapmokestinamasis pajamลณ dydis) reduces the income GPM is charged on. It shrinks as you earn more:
NPD = โฌ747 โ 0.49 ร (gross โ โฌ1,153)
So it is โฌ747 at the minimum wage (MMA) of โฌ1,153 and reaches zero at roughly โฌ2,677.49 gross. Additional allowances apply per child.
Worked Example: โฌ2,000 Gross
| Item | Amount |
|---|---|
| Gross | โฌ2,000.00 |
| NPD | โฌ331.97 |
| Taxable income | โฌ1,668.03 |
| GPM at 20% | โโฌ333.61 |
| Sodra at 19.5% | โโฌ390.00 |
| Net salary | โฌ1,276.39 |
Disclaimer. This calculator is for guidance only and is not tax advice. Confirm your position with VMI or a qualified adviser.