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Lithuania vs Latvia
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‡ฑ๐Ÿ‡ป Latvia
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
20โ€“31%
31% top; NATO spending affecting fiscal balance
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
9โ€“21%
Standard 21% maintained
No change
12โ€“21%
21% standard maintained
No change
Corporate Tax Rate
Corporate Tax Rate
15%
15%; competitive vs regional peers
No change
20%
20% distributed profits; Pillar Two active
No change
Capital Gains Tax
Capital Gains Tax
15โ€“20%
15%/20% stable
No change
20%
20% as income
No change
Social Security & Payroll
Social Security / Payroll
~44.7%
Social insurance reform discussions
No change
~35.09%
Contribution rates stable; pension II pillar growing
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‡ฑ๐Ÿ‡ป 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%โ€“3% 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.

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 Latvia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฑ๐Ÿ‡น Lithuania has a higher top income tax rate (20โ€“32% vs 20โ€“31%). ๐Ÿ‡ฑ๐Ÿ‡ป Latvia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Both countries have comparable consumption tax rates (9โ€“21% vs 12โ€“21%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฑ๐Ÿ‡น Lithuania offers a lower corporate rate (15% vs 20%), which can influence business location decisions.

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