Individual activity tax calculator 2026
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What do the abbreviations mean?
GPM is personal income tax, paid to VMI, the State Tax Inspectorate. VSD is state social insurance and PSD is compulsory health insurance; you pay both to Sodra, the State Social Insurance Fund. MMA is the minimum monthly wage. VDU is the average monthly wage, and the annual caps are set from it.
Updated 2026-10-31. The credit example is checked against VMI 5725, and the Sodra base and rates against Sodra's page for the self-employed. VMI has published the 2027 MMA. Under the 2027 draft budget, Sodra rates do not change. The 2027 VDU, the Sodra base ceiling and the GPM band thresholds are preliminary until the Seimas, the Lithuanian parliament, approves them. Farming is not covered.
What the estimate includes
| Line | Rule |
|---|---|
| Profit | Income minus the expenses you enter, before this estimate's VSD and PSD. Losses are not calculated. |
| GPM up to €42,500 | 20% minus a credit on the GPM base. With actual expenses, the base is profit minus the 12.52% VSD and the PSD. The extra 3% pension contribution does not reduce the base. €30,000.00 with no other expenses: base €24,735.00, GPM €2,017.55, also with the extra contribution. When the base is already €30,000, VMI's example is a credit of €2,500 and tax of €3,500. |
| GPM above €42,500 | No credit. 20% up to 36 times VDU, 25% up to 60 times VDU, 32% above that. Calculated from zero, as if you had no other income. |
| Sodra base | 90% of profit, before VSD and PSD. At most 43 times VDU: €99,422.45 in 2026, a preliminary €108,452.45 in 2027. |
| VSD | 12.52%, or 15.52% with the 3% pension contribution. Only the 12.52% is deducted from the GPM base. At the cap without the extra contribution: €12,447.69 in 2026, a preliminary €13,578.25 in 2027. |
| PSD | 6.98% of the same base; at the cap €6,939.69 in 2026, a preliminary €7,569.98 in 2027. If you are not insured elsewhere, at least €80.48 (€86.90 in 2027) for each month of activity. |
Residency, registration, filing and help in English are in the individual activity tax guide. First-year VSD relief is not switched on here.
Primary sources
VMI, Sodra and other official pages we checked this against. Most are in Lithuanian.
- Taxation of individual activity (VMI 5725, in Lithuanian) (opens an external source)
State Tax Inspectorate (VMI)
- Which taxes you have to pay (in Lithuanian) (opens an external source)
State Tax Inspectorate (VMI)
- Taxation of income of Lithuanian residents from 2026-01-01 (PDF, in Lithuanian) (opens an external source)
State Tax Inspectorate (VMI)
- I carry on individual activity (in Lithuanian) (opens an external source)
Sodra (State Social Insurance Fund Board)
- Sodra contribution rates for the self-employed from 2026-01-01 (in Lithuanian) (opens an external source)
Sodra (State Social Insurance Fund Board)
- Tax relief for parents from 2027 (in Lithuanian) (opens an external source)
State Tax Inspectorate (VMI)
- GPMĮ article 18², part 10, from 2027-01-01: amending law No XV-343 (in Lithuanian) (opens an external source)
Seimas of the Republic of Lithuania
- Law No XV-680 amending law No XV-343 (in Lithuanian) (opens an external source)
Register of Legal Acts
Common questions
Does the calculator apply the 30% expense allowance by itself?
No. The button enters 30% of your income and selects the 30% method. With that method VSD and PSD are not deducted from the GPM base a second time. Check in the law whether this deduction is allowed for your activity. An empty expenses field does not mean 30%.
Why is GPM 5% on profit up to €20,000?
This is the VMI rule from 2026-01-01: a GPM base of up to €42,500 is taxed at 20% minus a credit. Up to €20,000 the credit is 15% of the base, which leaves 5%. VMI's example, when the base is already €30,000: credit €2,500, tax €3,500. With actual expenses, the 12.52% VSD and the PSD reduce that base before the credit. The extra 3% pension contribution is not deducted.
What does the calculator do when profit is above €42,500?
No credit applies. The whole profit is taxed in bands of 20, 25 and 32% from zero, as if you had no other annual income. If you do have other income, the bands shift. There is no field for that here, so nothing gets added up wrongly.
What does Sodra charge on?
The base for VSD and income-based PSD is 90% of profit, before the contributions themselves are deducted, but no more than 43 times VDU: €99,422.45 in 2026 and a preliminary €108,452.45 in 2027. The VSD rate is 12.52%, or 15.52% with the 3% pension contribution. With actual expenses, the 12.52% VSD and the PSD then reduce the GPM base. The extra 3% is not deducted. The 30% method does not deduct the contributions a second time. This calculator does not cover farming.
Why can PSD be €80.48 or €86.90 a month even when profit is small?
If you are not insured elsewhere during that period, Sodra uses 6.98% of MMA for the PSD advance: €80.48 a month in 2026 and €86.90 in 2027. The estimate takes the larger of two amounts: this minimum times the months, or 6.98% of the Sodra base. If a job or the state covers you, we switch the minimum line off. This is an estimate, not a Sodra decision.
Does the calculator include the 2027 child tax credit?
No. From 2027 income, a parent with individual activity can get a GPM credit of €208.80 a year for each child. VMI applies it only in the annual return, for the first time when 2027 income is declared by 1 May 2028. Only one parent gets the credit for each child. If income is below 12 times MMA, the credit is reduced proportionally. If the right starts or ends during the year, the credit counts only those months: €208.80 / 12 × the number of months, which is €17.40 a month (GPMĮ article 18², part 10).