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Lithuania vs Germany
Tax Rate Comparison

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

🇱🇹 Lithuania
vs
🇩🇪 Germany
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
20–32%
32% top; NATO 5% GDP defence pledge affecting budgets
No change
14–45%
Basic allowance ~€12,336; bracket creep relief
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
9–21%
Standard 21% maintained
No change
7–19%
Standard 19% unchanged
No change

Corporate Tax Rate

Corporate Tax Rate
15%
15%; competitive vs regional peers
No change
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025

Capital Gains Tax

Capital Gains Tax
15–20%
15%/20% stable
No change
25%
Investment income reform proposals under review
No change

Social Security & Payroll

Social Security / Payroll
~44.7%
Social insurance reform discussions
No change
~41.5%
Health insurance rising; pension base up
+0.5pp vs 2025
State, Regional & Local Taxes

🇱🇹 LithuaniaMunicipal Income Tax Supplement

Lithuania's 60 municipalities levy a local supplement on income tax — 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.

🇩🇪 GermanyTrade Tax (Gewerbesteuer) & Church Tax

Germany's 16 Bundesländer apply federal income tax rates uniformly — no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

⚠️ 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.

Lithuania vs Germany: Key Tax Differences (2026)

💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (20–32% vs 14–45%). 🇱🇹 Lithuania is more favourable for high earners.

🛒 VAT/Sales Tax: Lithuania has a higher consumption tax (9–21% vs 7–19%).

🏢 Corporate Tax: 🇱🇹 Lithuania offers a lower corporate rate (15% vs 29%), which can influence business location decisions.

📈 Capital Gains: 🇱🇹 Lithuania taxes investment gains at a lower rate (20% vs 25%), benefiting investors.

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