Work out your net ("on hand") pay from a gross salary — including GPM income tax, Sodra contributions and the NPD tax-free allowance.
Your take-home pay
- Net salary€1,276.39
- GPM tax€333.61
- Sodra€390.00
If the net figure isn't what you expected — foreign income, a second job, or deductions you may be entitled to — an accountant can tell you why in one conversation.
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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 — personal income tax, charged on your gross pay minus the NPD allowance.
- Sodra — social and health insurance contributions, charged on the full gross. The health share is what buys access to public healthcare.
- Pension accumulation — 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 €83,237 | 20% |
| €83,237 – €138,729 | 25% |
| Above €138,729 | 32% |
Dividends are taxed separately at a flat 15% — the rule is set out in our income tax guide, and what to hold them in is covered under investing.
Sodra contributions
| Paid by | Rate | Covers |
|---|---|---|
| Employee | 19.5% | Social insurance 12.52% + health insurance 6.98% |
| Employer | 1.77% | On top of gross (2.49% for fixed-term contracts) |
| Employee (optional) | +3% | Pillar II pension accumulation |
NPD — the tax-free allowance
The NPD (neapmokestinamasis pajamų dydis) reduces the income GPM is charged on. It shrinks as you earn more:
NPD = €747 − 0.49 × (gross − €1,153)
So it is €747 at the minimum wage (MMA) of €1,153 and reaches zero at roughly €2,677.49 gross. Additional allowances apply per child.
Worked Example: €2,000 Gross
| Item | Amount |
|---|---|
| Gross | €2,000.00 |
| NPD | €331.97 |
| Taxable income | €1,668.03 |
| GPM at 20% | −€333.61 |
| Sodra at 19.5% | −€390.00 |
| Net salary | €1,276.39 |
€1,276.39 is what reaches your account. Whether that is comfortable depends on where you live — our cost of living guide and cost of living calculator put the same figure against real Vilnius, Kaunas and Klaipėda budgets. It also has to land somewhere: see bank accounts for foreigners.
Three things change the arithmetic above. Working self-employed under individuali veikla puts you on a different base, with different contributions and different deductions, so none of it applies. Foreign income, a second job or deductible expenses are settled in the annual declaration rather than in your payslip. And if you are here on a work-based residence permit, remember that Lithuanian employers quote gross — run the offer through the calculator before comparing it with what you earn now.
Salary Questions & Answers
Why is my net so much lower than gross?
Two deductions: income tax (GPM) above your tax-free allowance, and employee Sodra contributions covering social and health insurance. The calculator shows both lines separately.
What is the NPD tax-free allowance?
A portion of your salary that isn't taxed. It's highest at the minimum wage and tapers to zero as your salary rises — the formula on this page shows exactly how. Additional allowances apply per child.
Do Lithuanian job offers quote gross or net?
Gross, almost always. Run any offer through the calculator before comparing it to your current salary.
What is Pillar II and should I include it?
An optional additional pension contribution on top of mandatory Sodra. Toggle it in the calculator to see the difference it makes to take-home pay.
Are dividends taxed the same way?
No — dividends are taxed separately at a flat rate, not through the salary bands. The rate is shown in the tax table above.
Does the employer pay Sodra too?
Yes — an employer contribution on top of your gross salary, higher for fixed-term contracts. It doesn't come out of your pay, but it's part of your true cost to the employer.
I have children. How much does that add to my tax-free allowance?
The child allowance sits on top of whatever NPD your salary already gives you, and it does not taper with income the way the base allowance does. One child adds €70 a month, two children €210, three €350 and four or more €490 — the first child is worth €70 and every further child €140. One cap applies: the combined allowance can never exceed your gross pay, so on a very low salary the child bonus stops being worth its full face value. Set the number of children in the calculator and the NPD line moves accordingly.
I have a reduced work capacity rating. Is my allowance calculated differently?
Yes — it is replaced rather than adjusted. Instead of the tapering formula, a fixed NPD of €1,127 a month applies, which is above the €747 maximum available to anyone else and does not shrink as your salary rises. Any child allowance is added on top of that figure in the ordinary way. Tick the reduced-capacity option in the calculator to see it applied; if you leave it unticked the result will understate your net pay.
Another site shows different GPM band thresholds. Which is right?
Check the year, and check the arithmetic behind it. The thresholds are not fixed euro amounts set by parliament — they are multiples of the average wage, at 36 times and 60 times the VDU, which for 2026 is €2,312.15 a month. That is why they move every year and why old guidance dates quickly. The specific pair you may see quoted, €82,962 and €138,270, is a superseded set of values that circulated widely and was wrong across six pages of this site before being caught; the correct 2026 figures are €83,237 and €138,729. One further point that catches people out: those are annual thresholds, and the calculator applies one twelfth of each to a monthly salary.
Why does the student wage calculator give a different answer from this one on the same gross?
Because it is applying a different rule on purpose, not because one of them is wrong. This calculator runs the full progressive GPM bands and the tapering NPD. The student and hourly wage calculators deliberately apply a flat 20% instead, which is the right simplification for the earnings levels those pages deal with and the wrong one for a salary that crosses a band threshold. If your annual income is heading past €83,237, this page is the one to trust. If you are working part-time hours at or near the minimum rate, the difference between the two is immaterial.
Related Calculators
Disclaimer
This calculator is for guidance only and is not tax advice. Confirm your position with VMI or a qualified adviser.