Lithuania vs Luxembourg
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
🇱🇹 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.
🇱🇺 Luxembourg — Municipal Business & Property Taxes
Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%–400% = effective 6–10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.
Lithuania vs Luxembourg: Key Tax Differences (2026)
💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (20–32% vs 0–42%). 🇱🇹 Lithuania is more favourable for high earners.
🛒 VAT/Sales Tax: Lithuania has a higher consumption tax (9–21% vs 3–17%).
🏢 Corporate Tax: 🇱🇹 Lithuania offers a lower corporate rate (15% vs 24.94%), which can influence business location decisions.
📈 Capital Gains: 🇱🇹 Lithuania taxes investment gains at a lower rate (20% vs 42%), benefiting investors.