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Lithuania vs United Kingdom
Tax Rate Comparison

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

๐Ÿ‡ฑ๐Ÿ‡น Lithuania
vs
๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
20โ€“32%
32% top; NATO 5% GDP defence pledge affecting budgets
No change
0โ€“45%
Thresholds remain frozen; fiscal drag continuing
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
9โ€“21%
Standard 21% maintained
No change
0โ€“20%
Standard 20% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
15%
15%; competitive vs regional peers
No change
19โ€“25%
25% main rate; possible future reform discussions
No change
Capital Gains Tax
Capital Gains Tax
15โ€“20%
15%/20% stable
No change
18โ€“24%
Post-Oct 2024 rates in full effect
No change
Social Security & Payroll
Social Security / Payroll
~44.7%
Social insurance reform discussions
No change
~28.3%
15% employer NI; lower secondary threshold remains
No change
State, Regional & Local Taxes

๐Ÿ‡ฑ๐Ÿ‡น 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%โ€“3% by municipalities on commercial property and at 0.5%โ€“2% on residential property above โ‚ฌ150K value. Vehicle registration tax is national. Lithuania switched to a progressive income tax in 2019, having previously had a flat 15% rate.

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom โ€” Devolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically ยฃ1,200โ€“ยฃ4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

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

Lithuania vs United Kingdom: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom has a higher top income tax rate (20โ€“32% vs 0โ€“45%). ๐Ÿ‡ฑ๐Ÿ‡น Lithuania is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Lithuania has a higher consumption tax (9โ€“21% vs 0โ€“20%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฑ๐Ÿ‡น Lithuania offers a lower corporate rate (15% vs 25%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฑ๐Ÿ‡น Lithuania taxes investment gains at a lower rate (20% vs 24%), benefiting investors.

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