Lithuania self-employed net income calculator (individuali veikla)

Your net income under Lithuania's individual activity certificate is revenue minus a 30% expense allowance, minus GPM income tax, VSD social insurance and PSD health insurance on the resulting profit.

Worked example: with Annual revenue of 30,000, this model computes Net income / year 16,264.50. See the full breakdown.

⚠ Illustrative rates Updated for 2026 · sources checked 2026-08-22

How individuali veikla in Lithuania is calculated

Lithuania's individual activity certificate is the default route for freelancers, consultants and contractors. You can deduct actual documented expenses or take a flat 30% allowance with no receipts — most freelancers take the flat allowance, which is what this model uses.

What remains after the allowance is profit. GPM income tax starts at 5% (rising in bands at higher profit, simplified here to the flat starting rate); VSD social insurance is 12.52% and PSD health insurance is 6.98%, both charged on 90% of profit, with PSD subject to an annual minimum regardless of how little you earn.

The PSD minimum is the detail every simple summary misses: below a certain profit level, health insurance stops scaling down with income and becomes a fixed floor, which is why very low earners see a much higher effective rate than the headline percentages suggest.

Worked example

30,000 EUR revenue, flat 30% expense allowance
Annual revenue (EUR)30000
Profit after 30% allowance ✓21000
GPM income tax (5%) ✓1050
VSD social insurance ✓2366.28
PSD health insurance ✓1319.22
Net income / year ✓16264.5

Every row is computed by the engine from the inputs above. Rows marked ✓ are additionally pinned by a published self-test vector.

Frequently asked questions

How much net income from 30,000 EUR revenue in Lithuania?

The 30% expense allowance leaves 21,000 EUR profit. GPM (5%) is 1,050 EUR, VSD is 2,366.28 EUR and PSD is 1,319.22 EUR, leaving about 16,265 EUR net.

Can I deduct real expenses instead of the flat 30%?

Yes — actual documented costs are always an option instead of the flat allowance. This model uses the flat 30% allowance since it needs no receipts and is what most freelancers choose.

Why does health insurance not fall with low income?

PSD has an annual minimum (about 965.76 EUR) that applies regardless of profit, so at low income levels your effective health-insurance rate rises rather than staying at 6.98% of the base.

Sources

Estimate. Not tax advice. The rates in this calculator are illustrative: they reproduce the shape of the charge through 2 self-test cases, but they are not the official schedule, so the amount shown will not match your bill. Use the official source above for that.

Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 2 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.

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