What income tax rate applies to self-employed activity in 2026?

Up to €20,000 of annual taxable income a 5% rate applies. From €20,000 to €42,500 the rate gradually rises from 5% to 20%. Above €42,500 the standard 20/25/32% rates apply.

Is social security always mandatory for self-employed activity?

Once annual profit reaches 12× the minimum monthly wage (€13,836 in 2026), you're required to pay social security on a base of at least 12× the minimum wage, even if the actual 90% profit base is lower.

How do business certificate taxes differ from self-employed activity?

With a business certificate (verslo liudijimas), a fixed fee (a "patent") is set by the municipality based on activity type, and social security and health insurance are calculated not from actual income but from the minimum monthly wage, prorated by the certificate's valid days.

// tools / calculators

Self-employment tax calculator

Income → income tax, social security and health insurance under Lithuania's self-employed activity or business certificate rules.

This calculator is indicative, based on 2026 rates and formulas published by VMI and Sodra. It doesn't account for allowable deductions, individual reliefs, or specific activity types. For an exact calculation, please check with an accountant or VMI.

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Results

Income tax (annual) €0

Social security (annual) €0

Health insurance (annual) €0

Total taxes €0

Net annual income €0

Effective tax rate 0%

Self-employment tax calculator

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