Luxembourg Tax Calculator (2026)
Income tax rates and take-home pay for Luxembourg
Luxembourg Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Exempt | €0 - €13,230 | 0.0% |
| Bracket 1 | €13,230 - €15,435 | 8.0% |
| Bracket 2 | €15,435 - €17,640 | 9.0% |
| Bracket 3 | €17,640 - €19,845 | 10.0% |
| Bracket 4 | €19,845 - €22,050 | 11.0% |
| Bracket 5 | €22,050 - €24,255 | 12.0% |
| Bracket 6 | €24,255 - €26,550 | 14.0% |
| Bracket 7 | €26,550 - €28,845 | 16.0% |
| Bracket 8 | €28,845 - €31,140 | 18.0% |
| Bracket 9 | €31,140 - €33,435 | 20.0% |
| Bracket 10 | €33,435 - €35,730 | 22.0% |
| Bracket 11 | €35,730 - €38,025 | 24.0% |
| Bracket 12 | €38,025 - €40,320 | 26.0% |
| Bracket 13 | €40,320 - €42,615 | 28.0% |
| Bracket 14 | €42,615 - €44,910 | 30.0% |
| Bracket 15 | €44,910 - €47,205 | 32.0% |
| Bracket 16 | €47,205 - €49,500 | 34.0% |
| Bracket 17 | €49,500 - €51,795 | 36.0% |
| Bracket 18 | €51,795 - €54,090 | 38.0% |
| Bracket 19 | €54,090 - €117,450 | 39.0% |
| Bracket 20 | €117,450 - €176,160 | 40.0% |
| Bracket 21 | €176,160 - €234,870 | 41.0% |
| Bracket 22 | €234,870+ | 42.0% |
Personal allowance: €1,020
Sickness Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Sickness Insurance | €0+ | 2.8% |
Capped at €4,542 per year
Pension Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Pension Insurance | €0+ | 8.0% |
Capped at €12,978 per year
Dependency Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Exempt Threshold | €0 - €8,045 | 0.0% |
| Dependency contribution | €8,045+ | 1.4% |
Solidarity Surcharge
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Solidarity Surcharge | €0+ | 7.0% |
Key Facts
Tax Year
2025
Currency
EUR
Top Rate
42.0%
Brackets
23 brackets
Allowance
€1,020
Social Contributions
3 items
Assumptions
- · Worker profile: Single (Tax Class 1).
- · Calculations based on 2025 PIT scale including 2.5 index brackets adjustment.
- · Assumes standard minimum deductions: EUR 540 (Employment Expenses) and EUR 480 (Special Expenses).
- · Solidarity surcharge modeled at the standard 7% rate; note that a 9% rate applies if taxable income exceeds EUR 150,000 for Class 1.
- · Employee Tax Credit (CIS) and CO2 credits are excluded as specific sliding scale formulas for 2025 were not provided in the source.
Frequently asked questions
How much income tax will I pay as a single worker in Luxembourg?
Luxembourg uses a progressive tax system with 22 income tax brackets ranging from 0% (on income up to EUR 13,230) to 42% (on income above EUR 234,870). Your actual tax rate depends on your total income, but you'll also benefit from a EUR 1,020 annual tax relief. For example, income between EUR 13,230 and EUR 15,435 is taxed at 8%, while income between EUR 54,090 and EUR 117,450 is taxed at 39%.
What are the employee social contributions I need to pay in Luxembourg?
As an employee in Luxembourg, you contribute to three main social programs: Sickness Insurance (2.8% of gross income, capped at EUR 4,542.28), Pension Insurance (8% of gross income, capped at EUR 12,977.93), and Dependency Contribution (1.4% on income above EUR 8,045.32). All three contributions except the Dependency Contribution are tax-deductible, which means they reduce your taxable income.
What is the Solidarity Surcharge and how does it affect my take-home pay?
Luxembourg applies a Solidarity Surcharge of 7% on your income tax liability (or 9% if your taxable income exceeds EUR 150,000 for single filers). This surcharge is calculated after your income tax is determined and is added on top of your tax bill. For example, if you owe EUR 1,000 in income tax, you would pay an additional EUR 70 in solidarity surcharge.
Do I get any tax deductions or allowances in Luxembourg?
Yes, Luxembourg provides standard deductions including EUR 540 for employment expenses and EUR 480 for special expenses, plus a EUR 1,020 annual tax relief. Additionally, your employee social contributions (sickness and pension insurance) are deductible from your taxable income, which lowers the amount of income subject to the progressive tax brackets.
At what income level does Luxembourg's tax rate reach 40% or higher?
Luxembourg's top tax rates apply at higher income levels: the 40% bracket applies to income between EUR 117,450 and EUR 176,160, the 41% bracket applies between EUR 176,160 and EUR 234,870, and the highest 42% rate applies to all income above EUR 234,870. These rates only apply to the portion of income in each bracket, not your entire income.
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