Luxembourg Tax Calculator (2026)
Income tax rates and take-home pay for Luxembourg
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Luxembourg Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Zero rate | €0 - €13,230 | 0.0% |
| 8% | €13,230 - €15,435 | 8.0% |
| 9% | €15,435 - €17,640 | 9.0% |
| 10% | €17,640 - €19,845 | 10.0% |
| 11% | €19,845 - €22,050 | 11.0% |
| 12% | €22,050 - €24,255 | 12.0% |
| 14% | €24,255 - €26,550 | 14.0% |
| 16% | €26,550 - €28,845 | 16.0% |
| 18% | €28,845 - €31,140 | 18.0% |
| 20% | €31,140 - €33,435 | 20.0% |
| 22% | €33,435 - €35,730 | 22.0% |
| 24% | €35,730 - €38,025 | 24.0% |
| 26% | €38,025 - €40,320 | 26.0% |
| 28% | €40,320 - €42,615 | 28.0% |
| 30% | €42,615 - €44,910 | 30.0% |
| 32% | €44,910 - €47,205 | 32.0% |
| 34% | €47,205 - €49,500 | 34.0% |
| 36% | €49,500 - €51,795 | 36.0% |
| 38% | €51,795 - €54,090 | 38.0% |
| 39% | €54,090 - €117,450 | 39.0% |
| 40% | €117,450 - €176,160 | 40.0% |
| 41% | €176,160 - €234,870 | 41.0% |
| 42% | €234,870+ | 42.0% |
Sickness insurance
| Bracket | Income Range | Rate |
|---|---|---|
| 2.8% | €0+ | 2.8% |
Capped at €4,545 per year
Pension insurance
| Bracket | Income Range | Rate |
|---|---|---|
| 8% | €0+ | 8.0% |
Capped at €10,814 per year
Dependency contribution
| Bracket | Income Range | Rate |
|---|---|---|
| 1.4% | €8,045+ | 1.4% |
Solidarity tax
| Bracket | Income Range | Rate |
|---|---|---|
| 7% solidarity surcharge | €0+ | 7.0% |
Key Facts
Tax Year
2025
Currency
EUR
Top Rate
42.0%
Brackets
23 brackets
Tax-Free Threshold
€13,230
Social Contributions
3 items
Assumptions
- · Model uses Tax Class 1 (single person) as default representative employee.
- · Solidarity tax of 7% applied to income tax liability (standard rate for incomes up to EUR 150,000).
- · Employee tax credit modeled as tiered credit phasing from EUR 600 at low income to EUR 0 at higher income.
- · Social security contributions (sickness 2.80%, pension 8%) are deductible from gross income before income tax calculation.
- · Dependency contribution (1.4%) applied to gross income reduced by EUR 8,045.32 annual ceiling (EUR 675.94/month).
- · Minimum standard employment deduction of EUR 540 included in income-based deductions.
- · Commuting expense deduction limited to EUR 2,574 per year; modeled as percentage of income with maximum cap.
- · Life/disability insurance and loan interest deduction of EUR 672 per year included as flat standard deduction.
- · Employee contributions to employer pension schemes up to EUR 1,200/year are tax-deductible.
- · CISSM (minimum wage credit) not modeled as it applies only to gross monthly salary EUR 1,800–EUR 3,600; falls outside typical salary-comparison use case.
- · CO2 tax credit of EUR 192 per year included as flat credit.
- · Personal allowance for jointly taxable spouses (EUR 4,500) not applicable to single default person.
- · Non-resident rules and extraordinary charges deductions excluded as outside default resident employee scope.
- · Tax brackets simplified from index-adjusted 2025 scale; rates applied progressively.
- · All figures reflect 2025 tax year indexation.
Frequently asked questions
How much income tax will I pay if I move to Luxembourg as a single employee?
Luxembourg has a progressive tax system with 24 income tax brackets ranging from 0% to 42%, with no income tax on earnings up to EUR 13,230. The tax rate gradually increases as your income rises, so a single employee earning EUR 30,000 would pay tax only on income above EUR 13,230 at rates starting at 8%, while someone earning EUR 100,000 would be in the 39% bracket for higher portions of their income.
What social security contributions do employees pay in Luxembourg?
Employees in Luxembourg contribute 2.8% for sickness insurance, 8% for pension insurance, and 1.4% for dependency contribution (after a EUR 8,045 annual threshold). The sickness and pension contributions are deductible from your gross income before income tax is calculated, which reduces your overall tax burden.
Are there any tax credits available to help reduce my Luxembourg income tax?
Yes, Luxembourg offers two main tax credits for employees: an employee tax credit of up to EUR 600 per year (which phases out as income increases above EUR 30,000) and a CO2 tax credit of EUR 192 per year. Both credits are refundable, meaning you can receive money back if the credits exceed your tax liability.
What deductions can I claim as an employee in Luxembourg?
You can claim several standard deductions: EUR 540 for general employment expenses, up to EUR 2,574 for commuting expenses, and EUR 672 for life/disability insurance and loan interest. These deductions reduce your taxable income before the progressive tax rates are applied.
Do I pay a solidarity tax on top of my regular income tax in Luxembourg?
Yes, Luxembourg applies a 7% solidarity surcharge on your income tax liability, which is added after your regular income tax is calculated. This means if your income tax is EUR 1,000, you would pay an additional EUR 70 in solidarity tax.
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