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Latvia vs Lithuania
Tax Rate Comparison

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

πŸ‡±πŸ‡» Latvia
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
20–31%
31% top; NATO spending affecting fiscal balance
No change
20–32%
32% top; NATO 5% GDP defence pledge affecting budgets
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
12–21%
21% standard maintained
No change
9–21%
Standard 21% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20% distributed profits; Pillar Two active
No change
15%
15%; competitive vs regional peers
No change
Capital Gains Tax
Capital Gains Tax
20%
20% as income
No change
15–20%
15%/20% stable
No change
Social Security & Payroll
Social Security / Payroll
~35.09%
Contribution rates stable; pension II pillar growing
No change
~44.7%
Social insurance reform discussions
No change
State, Regional & Local Taxes

πŸ‡±πŸ‡» Latvia β€” Municipal Income Tax

Latvia's 119 municipalities levy a local income tax portion β€” 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamā Δ«paΕ‘uma nodoklis) is set by municipalities at 0.2%–3% of cadastral value. Latvia uses the progressive income tax system introduced in 2018 (replacing the flat 23%). Vehicle tax and business risk duty are national.

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.

Latvia vs Lithuania: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡±πŸ‡Ή Lithuania has a higher top income tax rate (20–31% vs 20–32%). πŸ‡±πŸ‡» Latvia is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Both countries have comparable consumption tax rates (12–21% vs 9–21%).

🏒 Corporate Tax: πŸ‡±πŸ‡Ή Lithuania offers a lower corporate rate (15% vs 20%), which can influence business location decisions.

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