Individual Activity Tax Calculator

In 2026, a new progressive GPM system comes into effect. For income up to €20,000, the 5% rate remains, for €20,000-€42,500 income the rate progressively increases to 20%, and for income above €42,500 a tiered rate applies: 20%, 25% and 32%.

VSD (12.52%) and PSD (6.98%) taxes are calculated on 90% of taxable income. This means if your taxable income is €25,000, VSD and PSD taxes are calculated on €22,500.

From 2025, you must register as a VAT payer if your annual income exceeds €55,000 (previously €45,000). This is gross income, not taxable income.

You can deduct business-related expenses: office rent, equipment, transport, communication services, training courses and other expenses directly related to income generation.

An individual activity certificate is a document that allows a natural person to engage in individual activity in Lithuania. The certificate can be obtained from VMI or the municipality.

VSD payment is optional for individual activity performers. PSD payment is mandatory if you are not insured on other grounds (e.g., employment relationship).

In 2025, the minimum monthly wage is €1,038. If you pay PSD, the minimum monthly payment will be calculated from this amount.

GPM is paid by the 15th of the following month, VSD and PSD - by the last day of the current month. Annual GPM declaration is submitted by March 31.

In 2026, individual activity performers with high incomes will pay significantly more taxes. For example, with €50,000 income, GPM will increase from 15% to 20%.

The calculator uses official 2025 and 2026 tax rates. However, individual cases may differ, so it is recommended to consult with an accountant or VMI.