NPD 2026 in Lithuania is an important topic for employees because the non-taxable income amount determines how much personal income tax is paid and how much salary remains after taxes.
The larger the NPD applied to your salary, the smaller the part of your income that is taxed. As a result, employees receive a higher net salary.
What is NPD
NPD stands for non-taxable income amount. It is the portion of a person’s salary that is not subject to personal income tax.
This means that a part of the salary is effectively tax-free, allowing employees to keep more money after taxes.
NPD amount in 2026
In 2026, the standard monthly NPD is €747 for employees whose monthly income does not exceed €1153.
| Monthly income | NPD applied | Explanation |
|---|---|---|
| Up to €1153 | €747 | Full NPD applied |
| Above €1153 | Reduced NPD | NPD = 747 – 0.49 × (income – 1153) |
| About €2678 or more | €0 | NPD no longer applies |
This means that people earning the minimum wage receive the full NPD, while higher salaries gradually reduce the amount.
How NPD is calculated in 2026
If monthly income exceeds €1153, the following formula is used:
NPD = 747 – 0.49 × (monthly income – 1153)
| Gross salary | Calculation | NPD |
|---|---|---|
| €1153 | Income does not exceed threshold | €747 |
| €1300 | 747 – 0.49 × (1300 – 1153) | €674.97 |
| €1500 | 747 – 0.49 × (1500 – 1153) | €576.97 |
| €2000 | 747 – 0.49 × (2000 – 1153) | €331.97 |
| €2678 | NPD becomes zero | €0 |
How NPD affects your take-home salary
NPD directly influences how much salary an employee receives after taxes. A larger NPD means a smaller taxable income, which reduces the amount of personal income tax paid.
However, the final take-home salary also depends on other factors such as social insurance contributions and pension payments.
When NPD stops applying
NPD gradually decreases as income increases. When monthly income reaches approximately €2678, the NPD effectively becomes zero and the entire income becomes taxable.
Who should pay attention to NPD
- Employees who want to understand their net salary
- People comparing gross and net income
- Employers calculating payroll
- Anyone interested in the Lithuanian tax system
FAQ about NPD 2026
What is NPD?
NPD is the non-taxable income amount that reduces the taxable portion of salary.
What is the NPD amount in Lithuania in 2026?
The monthly NPD is €747 for employees earning up to €1153.
How is NPD calculated?
If income exceeds €1153, the formula is used: NPD = 747 – 0.49 × (income – 1153).
Does everyone receive the same NPD?
No. NPD depends on income and decreases as salary increases.
At what salary does NPD disappear?
NPD becomes zero when income reaches approximately €2678 per month.
Source: Lithuanian tax authority guidelines.