GPM Calculator 2026
Lithuanian personal income tax for individual activity — a 20% rate with a tax credit up to 42,500 €. Find your exact amount now.
Updated: July 2026 · Based on the 2026 GPM law
Individual-activity GPM in 2026 is a 20% rate, but only on the taxable base (income minus the flat 30% expense rate or actual expenses). While annual income stays at or below 42,500 €, the tax credit further reduces the tax, so the effective rate is often 3–14%.
- GPM rate: 20% on the taxable base (GPM law Art. 6 §8).
- Tax credit: 15% of the GPM base up to 20,000 €, tapering to 0 at 42,500 €.
- Example: on 30,000 € of income (flat-rate) GPM is ~1,190 € — an effective rate of ~4.0%.
- Declared once a year (form GPM311) by May 1.
How GPM Is Calculated for Individual Activity
IV GPM is calculated in three steps:
- Determine the GPM base. Deduct the flat 30% expense rate from income, or actual expenses (+ paid VSD and PSD under the actual method).
- Calculate gross GPM: GPM base × 20%.
- Subtract the tax credit (if income ≤ 42,500 €/year). The result is the GPM actually due.
The Tax Credit — In Detail
The tax credit (GPM law Art. 18-2) works as a GPM reduction for lower-income IV earners. The formula depends on the size of the GPM base:
GPM base ≤ 20,000 €
credit = base × 15%
GPM base 20,001 €–42,500 €
credit = base × (15% − 2/300,000 × (base − 20,000))
As annual income approaches the 42,500 € threshold, the credit disappears and the effective GPM rate jumps sharply — important to know when planning income near this limit.
GPM Calculation Examples (2026)
Flat-rate examples — how the tax credit lowers GPM while income stays at or below 42,500 €:
If you earn 15,000 €
If you earn 30,000 €
If you earn 45,000 €
Above 42,500 € the credit no longer applies
Effective GPM rate by income (flat-rate)
| Annual income | GPM base | GPM due | Effective GPM % |
|---|---|---|---|
| 15,000 € | 10,500 € | 525 € | 3.5% |
| 20,000 € | 14,000 € | 700 € | 3.5% |
| 30,000 € | 21,000 € | 1,190 € | 4.0% |
| 45,000 € | 31,500 € | 6,300 € | 14.0% |
Note: this shows GPM only. VSD and PSD are calculated separately — see the full IV calculator.
The Annual GPM Declaration
GPM is declared once a year — in the annual IV income declaration (form GPM311). The filing deadline is May 1.
The declaration states the chosen expense method (flat-rate or actual), all income received during the year, business expenses (under the actual method), and the VSD and PSD amounts paid.
If the 42,500 € threshold was exceeded during the year, the 20% rate applies to all income above it and the tax credit no longer applies.
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