Estonia vs Lithuania
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.
๐ช๐ช Estonia โ 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 โ only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%โ2.5% of assessed land value by municipalities.
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.
Estonia vs Lithuania: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐น Lithuania has a higher top income tax rate (22% vs 20โ32%). ๐ช๐ช Estonia is more favourable for high earners.
๐ VAT/Sales Tax: Estonia has a higher consumption tax (9โ24% vs 9โ21%).
๐ข Corporate Tax: ๐ฑ๐น Lithuania offers a lower corporate rate (15% vs 22%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐น Lithuania taxes investment gains at a lower rate (20% vs 22%), benefiting investors.