🇱🇺 Income Tax Calculator Luxembourg 2026
Calculate your income tax in Luxembourg: Progressive Income Tax
~0 EUR | ~$0
€0
~$0
Effective rate: 0%
€0
Social contributions: ~13% employee
€0
~$0
Monthly: €0 (~$0)
Income Distribution
Effective total rate: 0%
1. Income Tax (~€12,500)
Progressive rates from 0% to 42%
Class 1 (single): effective rate ~17.8%
Total Tax: ~€12,500
2. Social Contributions (~€8,750)
Health insurance (3.05%): €2,135
Pension (8%): €5,600
Long-term care (1.4%): €980
Total: ~€8,715
That's ~€4,065/month | Effective rate: ~30.3%
Employee Contributions
- Health: 3.05%
- Pension: 8%
- Long-term care: 1.4%
Employer Contributions
- Health: 3.05%
- Pension: 8%
- + Accident, occupational health
Complete Guide to Luxembourg Taxation
Luxembourg offers an attractive tax regime with moderate rates, numerous deductions, and advantageous taxation for couples and families. It's also Europe's #1 employer of cross-border workers (~200,000 commuters).
2026 Tax Brackets
| Taxable Income | Rate | Cumulative Tax |
|---|---|---|
| 0 - 13,230 EUR | 0% | 0 EUR |
| 13,230 - 15,270 EUR | 8% | 163 EUR |
| 15,270 - 21,390 EUR | 12% | 897 EUR |
| 21,390 - 31,590 EUR | 22% | 3,141 EUR |
| 31,590 - 43,830 EUR | 32% | 7,058 EUR |
| 43,830 - 100,000 EUR | 39% | 28,964 EUR |
| Above 100,000 EUR | 42% | - |
+ Employment fund contribution: 7-9% of tax amount
Tax Classes
Social Contributions Breakdown
Employee Share (~12.45%)
- Health insurance: 3.05%
- Pension: 8%
- Long-term care: 1.4%
Employer Share (~12-15%)
- Health insurance: 3.05%
- Pension: 8%
- Accident insurance: 0.7-1.2%
- Occupational health: 0.1%
2026 contribution ceiling: 143,243 EUR/year (5x minimum wage)
Tax Deductions & Allowances
Special Expenses
- Retirement savings (art. 111bis): 3,200 EUR/year
- Life insurance: varies by age (672-2,688 EUR)
- Home bonus: up to 20,000 EUR
- Mortgage interest: deductible
Professional Expenses
- Employee flat-rate: 540 EUR
- Commuting: 99 EUR/km (max 30 km)
- Continuing education: actual costs
- Work equipment: actual costs
Cross-Border Workers
Luxembourg employs ~200,000 cross-border commuters (France, Belgium, Germany). Key points:
- Taxed in Luxembourg on LU-source income
- Tax treaties prevent double taxation
- Can request tax resident assimilation
- Commuting deduction (max 30 km)
- Remote work: max 34 days/year (France)
- Beyond: taxed in country of residence
Luxembourg vs France Comparison
| Category | Luxembourg | France |
|---|---|---|
| Maximum marginal rate | 42% | 45% |
| Employee contributions | ~12.5% | ~22% |
| Minimum wage | 2,570 EUR/month | 1,766 EUR/month |
| Capital gains tax | Exempt after 6 months | 30% flat |
| Net on 70,000 EUR income | ~48,785 EUR | ~42,000 EUR |
Luxembourg Tax Advantages
Key Considerations
- Remote work limits: Cross-border workers limited to 34 days/year (France) - beyond this you're taxed in your residence country
- Mandatory filing: Required if income > 100,000 EUR or multiple income sources
- Cost of living: Luxembourg City is very expensive (rents 2-3x higher than France)
- Filing deadline: March 31 of the following year
Luxembourg is a major European financial centre with competitive taxation. Compare with neighbouring countries where cross-border workers are numerous.