Lithuanian IV Tax Calculator
Calculate GPM, VSD and PSD for individual activity (individuali veikla, IV) — the Lithuanian self-employment regime — under the laws in force for 2026. Pick an expense method and see your net profit.
Based on the 2026 GPM law and Sodra rates
Individual activity (IV) in 2026 pays three taxes: GPM 20% (personal income tax on the taxable base, with a tax credit up to 42,500 €), VSD 12.520000000000001% (social insurance) and PSD 6.98% (health insurance) on the Sodra base. The overall burden is typically 16–26% of income, depending on income level and expense method.
- GPM 20%, VSD 12.520000000000001%, PSD 6.98% — the 2026 rates.
- On 30,000 € (flat-rate): ~4,876 € in taxes, ~25,125 € take-home.
- Flat-rate = fixed 30% expense deduction; actual = real expenses + VSD/PSD deductible.
- VSD/PSD are paid quarterly; GPM once a year, by May 1.
20%
GPM
Income tax
12.520000000000001%
VSD
Sodra (pension)
6.98%
PSD
Health insurance
GPM — Personal Income Tax
GPM for individual activity is calculated on the taxable base, not on gross income. Before the 20% rate is applied, allowed deductions come off — either real business expenses or the flat-rate 30% deduction.
There is also the tax credit (Art. 18-2): when annual income does not exceed 42,500 €, the GPM amount is reduced. Up to 20,000 € the credit equals 15% of the GPM base, then tapers off.
GPM is declared once a year (form GPM311), due by May 1.
VSD and PSD — Social and Health Insurance
VSD (Sodra) — 12.520000000000001% on the Sodra base derived from IV income. These contributions build your pension record and entitle you to maternity and sickness benefits.
PSD (health insurance) — 6.98% on the same base. It covers state healthcare.
Both are due quarterly — March 31, June 30, September 30 and December 31. Late payment accrues interest.
Which Expense Method Is Better?
Flat-rate 30% (paušalinė)
- ✓ Automatic 30% deduction
- ✓ No receipts to collect
- ✓ Good for service providers
- ✓ Simpler administration
Actual expenses (faktinės)
- ✓ Real expenses deducted
- ✓ VSD + PSD deductible too
- ✓ Better when expenses > 30%
- ✓ Requires receipts and invoices
Worked Examples (2026)
Real numbers — how much tax you would pay and what stays in your pocket:
20,000 € · flat-rate
30,000 € · flat-rate
30,000 € · actual (10,000 € exp.)
Under the actual-expenses method, net profit = income − taxes − expenses. Figures computed with the 2026 rates.
Tax burden by income (flat-rate)
| Income | GPM | VSD+PSD | Total | Burden % |
|---|---|---|---|---|
| 20,000 € | 700 € | 2,543 € | 3,243 € | 16,2% |
| 30,000 € | 1,190 € | 3,686 € | 4,876 € | 16,3% |
| 45,000 € | 6,300 € | 5,528 € | 11,828 € | 26,3% |
At 42,500 € the tax credit disappears, so the burden jumps. For higher income a small partnership (MB) may work out better — the Lithuanian comparison guides are linked from the calculator on the Lithuanian version of this page.
Frequently Asked Questions
IV Tax Calculator
GPM + VSD + PSD · 2026 rates
Expense method
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