Lithuania Tax Changes 2027: Child NPD, Higher Minimum Wage, Same GPM Rates
Parents get a new non-taxable amount per child, and the planned minimum wage rise lifts the NPD for everyone earning up to about €2,769 a month. Each 2027 figure below carries its status: adopted, announced or pending.
Headline change
Additional non-taxable amount from 1 January 2027, adopted
Lithuania 2026 vs 2027: key tax parameters
| Parameter | 2026 | 2027 | Status |
|---|---|---|---|
| GPM rates on annual income | 20% / 25% / 32% | 20% / 25% / 32% | Adopted (unchanged) |
| 20% band up to (36 VDU) | €83,237.40 a year | 36 × 2027 VDU | Pending (December) |
| 32% rate from (60 VDU) | €138,729 a year | 60 × 2027 VDU | Pending (December) |
| Basic NPD (gross at or below the MMA) | €747 a month | €747 a month | Adopted (unchanged) |
| Gross at which the NPD reaches zero | €2,677.49 a month | €2,769.49 a month | Announced (follows the MMA) |
| Additional NPD per child | None | €1,044 a year (up to €208.80 back) | Adopted |
| IDV tax credit per child (instead of the child NPD) | None | €208.80 | Adopted |
| Minimum monthly wage (MMA) | €1,153 | €1,245 | Announced |
| Sodra employee contributions | 19.5% | No change announced | — |
| Sodra ceiling for the 12.52% part (60 VDU) | €138,729 a year | 60 × 2027 VDU | Pending (December) |
| IDV minimum health contribution (6.98% × MMA) | €80.48 a month | €86.90 a month | Follows the MMA (announced) |
2026 values match the TaxRavens calculator. 2027: Law XV-343 (child NPD, IDV child credit, NPD formula); MMA as approved by the government on 1 July 2026; VDU-based values come with the 2027 Sodra budget law.
Take-home pay: 2026 vs 2027 (if the MMA is €1,245)
| Gross salary / month | Net 2026 | Net 2027 | Difference |
|---|---|---|---|
| Minimum wage: €1,153 → €1,245 | €846.96 | €902.62 | +€55.66 |
| €2,000 | €1,276.39 | €1,285.41 | +€9.02 |
| €2,500 | €1,529.89 | €1,538.91 | +€9.02 |
| €3,000 | €1,815.00 | €1,815.00 | €0 |
TaxRavens calculation: employee with no children, standard NPD only, Sodra 19.5%, no optional II pillar contribution; same gross in both years except the minimum-wage row, which matches the government's figure of at least €902. The NPD formula is adopted; the €1,245 MMA is announced. From €2,769.49 a month nothing changes.
Employees
The MMA moves your NPD
The monthly NPD is €747 if your gross pay is at or below the MMA. Above it, NPD = 747 − 0.49 × (gross − MMA). The formula stays in 2027, but its MMA input would rise from €1,153 to €1,245. At the same gross that is up to €45.08 more NPD and up to €9.02 less GPM a month, about €108 a year. The full gain applies between €1,245 and €2,677, then tapers off and ends at €2,769.49.
Example at €2,500 gross: NPD €86.97 in 2026 and €132.05 in 2027, so GPM falls from €482.61 to €473.59 a month.
High earners: the 25% and 32% thresholds and the Sodra ceiling are 36 and 60 times the 2027 VDU. Every 1% rise in the VDU moves the 25% threshold by about €832, and the 32% threshold and the ceiling by about €1,387.
Parents: how the €1,044 child NPD works
Per child under 18, or up to 23 while in general education. Only one parent can claim each child.
Claimed only in the annual return: 2027 income is settled in spring 2028.
Works even when your regular NPD is zero, but the refund per child is capped at €208.80.
Reduced pro rata if annual employment income is below 12 × MMA (€14,940 with the announced MMA).
Self-employed (IDV)
A €208.80 credit per child, the rest stays
People working under IDV (individuali veikla, individual activity) get a new <strong>€208.80 tax credit per child</strong>, which they can take instead of the €1,044 child NPD, whichever works better. It is reduced pro rata if annual IDV taxable income is below 12 × MMA and also covers IDV income above €42,500. The IDV regime from the 2026 reform stays: up to €42,500 a year, 20% minus a credit (an effective 5–20%); above that, IDV income is added to other income and taxed at 20/25/32%. The minimum health contribution (PSD, 6.98% of the MMA) would rise from €80.48 to €86.90 a month with the €1,245 MMA.
Expats and non-residents
Tax residents only
Lithuania has no special expat regime, and nothing changes for non-residents in 2027. The child NPD and the IDV child credit are only for permanent Lithuanian residents, that is, tax residents.
What is still pending
FAQ
What is the new child NPD in Lithuania in 2027?
An extra €1,044 of non-taxable income per child a year, adopted in Law XV-343 and applied to 2027 income. It is worth up to €208.80 of tax back per child, claimed in the annual return in 2028. Only one parent can claim each child.
Will my take-home pay in Lithuania rise in 2027?
Only if you earn up to about €2,769 a month. If the announced MMA of €1,245 is confirmed, the NPD rises by up to €45.08 a month, which is up to €9.02 less GPM at the same gross. Minimum-wage earners would take home about €902.
Do GPM rates change in Lithuania in 2027?
No. The 20%, 25% and 32% rates from the 2026 reform stay. The thresholds are 36 and 60 times the 2027 VDU, set in December (2026: €83,237.40 and €138,729 a year).
Can expats claim the child NPD?
Only if they are Lithuanian tax residents. Non-residents cannot claim it, and there is no special expat regime.
