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Estonia vs Lithuania
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡ͺπŸ‡ͺ Estonia
vs
πŸ‡±πŸ‡Ή Lithuania
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
22%
22% national + local supplement; defence spending driving rate increases
No change
20–32%
32% top; NATO 5% GDP defence pledge affecting budgets
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
9–24%
24% standard; defence-driven fiscal pressure
No change
9–21%
Standard 21% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
22%
22% on distributed profits; retained earnings still 0%
No change
15%
15%; competitive vs regional peers
No change
Capital Gains Tax
Capital Gains Tax
22%
22% as income
No change
15–20%
15%/20% stable
No change
Social Security & Payroll
Social Security / Payroll
~33%
33% social tax maintained; III pillar voluntary pension growing
No change
~44.7%
Social insurance reform discussions
No change
State, Regional & Local Taxes

πŸ‡ͺπŸ‡ͺ Estonia β€” Local Income Tax Supplement

Estonia's 79 local governments levy a local income tax supplement of 11.4% of taxable income (2024), collected alongside the national 20% income tax. Together these form the effective total income tax. Estonia's unique fully distributed profit taxation system means companies pay no corporate income tax on retained earnings β€” only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%–2.5% of assessed land value by municipalities.

πŸ‡±πŸ‡Ή Lithuania β€” Municipal Income Tax Supplement

Lithuania's 60 municipalities levy a local supplement on income tax β€” 68% of PIT revenue goes to municipalities, creating strong local fiscal capacity. Property tax (nekilnojamojo turto mokestis) is set at 0.5%–3% by municipalities on commercial property and at 0.5%–2% on residential property above €150K value. Vehicle registration tax is national. Lithuania switched to a progressive income tax in 2019, having previously had a flat 15% rate.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Estonia vs Lithuania: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡±πŸ‡Ή Lithuania has a higher top income tax rate (22% vs 20–32%). πŸ‡ͺπŸ‡ͺ Estonia is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Estonia has a higher consumption tax (9–24% vs 9–21%).

🏒 Corporate Tax: πŸ‡±πŸ‡Ή Lithuania offers a lower corporate rate (15% vs 22%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡±πŸ‡Ή Lithuania taxes investment gains at a lower rate (20% vs 22%), benefiting investors.

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