Lithuania vs Latvia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐น Lithuania โ Municipal Income Tax Supplement
Lithuania's 60 municipalities levy a local supplement on income tax โ 68% of PIT revenue goes to municipalities, creating strong local fiscal capacity. Property tax (nekilnojamojo turto mokestis) is set at 0.5%โ3% by municipalities on commercial property and at 0.5%โ2% on residential property above โฌ150K value. Vehicle registration tax is national. Lithuania switched to a progressive income tax in 2019, having previously had a flat 15% rate.
๐ฑ๐ป Latvia โ Municipal Income Tax
Latvia's 119 municipalities levy a local income tax portion โ 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamฤ ฤซpaลกuma nodoklis) is set by municipalities at 0.2%โ3% 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.
Lithuania vs Latvia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐น Lithuania has a higher top income tax rate (20โ32% vs 20โ31%). ๐ฑ๐ป Latvia is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (9โ21% vs 12โ21%).
๐ข Corporate Tax: ๐ฑ๐น Lithuania offers a lower corporate rate (15% vs 20%), which can influence business location decisions.