Estonia vs Lithuania
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇪🇪 Estonia — 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 — only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%–2.5% of assessed land value by municipalities.
🇱🇹 Lithuania — Municipal 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.
Estonia vs Lithuania: Key Tax Differences (2026)
💰 Income Tax: 🇱🇹 Lithuania has a higher top income tax rate (22% vs 20–32%). 🇪🇪 Estonia is more favourable for high earners.
🛒 VAT/Sales Tax: Estonia has a higher consumption tax (9–24% vs 9–21%).
🏢 Corporate Tax: 🇱🇹 Lithuania offers a lower corporate rate (15% vs 22%), which can influence business location decisions.
📈 Capital Gains: 🇱🇹 Lithuania taxes investment gains at a lower rate (20% vs 22%), benefiting investors.