Lithuania Tax Agency Issues Notice Clarifying Individual Income Tax Amendments for 2026

The Lithuanian State Tax Inspectorate Aug. 26 issued Notice No. R-3286, clarifying Letter No. R-2727 on the individual income tax amendments for 2026. The notice clarifies that: 1) the individual income tax rates for 2026 will be 20 percent for annual income up to 82,962 euros (US$96,513), 25 percent for income exceeding 82,962 euros and below 138,270 euros (US$160,855), and 32 percent for income exceeding 138,270 euros; 2) individuals with business licenses will pay a flat-rate income tax for business and rental income up to 50,000 euros (US$58,167), with any excess amounts taxed as non-employment income; and 3) income from ...