Lithuania Tax Guide 2026 — 20% Flat, Low Social & Why Vilnius Devs Keep 70%
Lithuania = 20% flat tax + capped social security. For devs €40–120k, net beats most EU. Here's 2026.
2026 Tax System
Personal Income Tax
| Income (€) | Rate |
|---|---|
| All income | 20% flat |
No brackets. Simple 20%.
Social Security (Employee - SODRA)
| Component | Rate | Cap (2026) |
|---|---|---|
| Pension | 19.5% | 13,590 €/mo |
| Health | 6.98% | 13,590 €/mo |
| Sickness | 0% (employer) | — |
| Total | 26.48% | Max 3,590 €/mo |
Social Security (Employer)
| Component | Rate | Cap |
|---|---|---|
| Accident | 0.18–1.8% | 13,590 €/mo |
| Total | ~0.2–1.8% | — |
Self-employed (IĮ): 20% tax + 26.48% social on declared income (min 1 MSA = €800/mo)
Tech Salary Examples (Vilnius, 2026)
Employee
| Gross €/mo | Net €/mo | Effective |
|---|---|---|
| 3,000 | 2,064 | ~31% |
| 5,000 | 3,184 | ~36% |
| 8,000 | 4,584 | ~43% |
| 12,000 | 5,984 | ~50% (cap helps) |
Above ~€13,590 gross/mo, social caps → marginal tax = 20%
IĮ (Self-Employed) — Choose Income
| Declared €/mo | Tax (20%) | Social (26.48%) | Net € | Effective |
|---|---|---|---|---|
| 2,000 | 400 | 530 | 1,070 | ~46% |
| 4,000 | 800 | 1,060 | 2,140 | ~46% |
| 8,000 | 1,600 | 2,120 | 4,280 | ~46% |
| 13,590 (cap) | 2,718 | 3,590 | 7,282 | ~46% |
Self-employed pays full social — employee splits with employer.
Key 2026 Changes
- Social security ceiling 13,590 €/mo (was 11,900)
- Minimum monthly wage 924 € → affects IĮ minimum base
- Non-taxable allowance €625/mo (phases out >€1,200)
- VAT threshold 45,000 €/yr
Why Vilnius Wins
- Flat 20% tax — predictable, simple
- Capped social security — max €3,590/mo employee side
- Cost of living — 1BR €500–800, dinner €8–12
- English-first tech — 60%+ companies English internal
- Fintech hub — Revolut, Vinted, NordVPN engineering here
- Time zone — EET, great for EU/US overlap
The Catch
- Lithuanian language — Baltic, needed for govt/citizenship (10yr residency)
- Healthcare — public good; private €30–50/mo
- Small market — 2.8M people, hire remote
- Winter — dark, cold, but less than Estonia
- Brain drain — reversing with remote work
IĮ vs Employee
| Factor | Employee | IĮ (Self-Employed) |
|---|---|---|
| Social security | Split 50/50 | You pay 100% |
| Admin | Zero | Accountant ~€100/mo |
| Flexibility | Low | High |
| Expenses | Limited | Business expenses deductible |
| Sick pay | Employer | Self-funded |
Employee better for most. IĮ only if multiple clients + high expenses.
Bottom Line
Lithuania = solid mid-tier net pay. Employee at €100k gross keeps ~€55k net. Vilnius rent €600, life €1,200 → €35k+ disposable. Fintech salaries often 20% above local market.
Calculate your exact Lithuania take-home → taxyoursalary.com/lithuania
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