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Luxembourg Income Tax Calculator

Enter your taxable income and tax class to estimate your Luxembourg income tax, social security and take-home pay using the 23-band indexed tariff across multiple tax years.

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Tax Calculator

Luxembourg — 2026 Tax Year

2026 Tax Year

Select the tax year to view applicable rules and rates

This is an estimate. Consult a tax professional for accurate calculations.

Enter your income to calculate

Fill in your gross income and filing status, then calculate to see your tax breakdown.

How to use Luxembourg Income Tax Calculator

This Luxembourg income tax calculator estimates your personal income tax (impôt sur le revenu) on the Grand Duchy’s highly granular 23-band tariff, based on the taxable income, tax class and tax year you select. Choose between 2023, 2024, 2025 and 2026, and between Class 1 (single) and Class 2 (married/joint). Luxembourg indexes the tariff to inflation, so the thresholds rose in 2024 and again in 2025 while the 0%-to-42% rates stayed the same. The calculator applies the tariff, then shows your effective rate, marginal rate and a full bracket breakdown, plus your take-home after the roughly 12.45% employee social security.

  1. Select your tax year (2023, 2024, 2025, or 2026) from the dropdown.
  2. Enter your annual taxable income in euros (gross salary, ideally after standard allowances).
  3. Choose your tax class — Single (Class 1) or Married/joint (Class 2).
  4. Click Calculate to see your income tax, effective rate and marginal rate.
  5. Review the band-by-band breakdown and your estimated take-home after social security.

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How the Luxembourg tariff and tax classes work

Luxembourg taxes income on an unusually fine progressive scale: 23 bands whose marginal rates climb from 0% through 8%, 9%, 10% and so on up to 42% on the top band. Only the slice of income inside each band is taxed at that band’s rate. Which band edges apply depends on your tax class. Class 1 is the single scale. Class 2 (married couples and civil partners taxed jointly) uses full income splitting — the tax is computed on half the joint income and then doubled — which is the same as applying the Class 1 scale with every threshold doubled, and it noticeably lowers a one-earner couple’s rate. Class 1a (single with children or aged 65+) sits between the two and is not modelled here. This calculator applies the tariff to the taxable income you enter, so for best accuracy enter income after the standard frais d’obtention and dépenses spéciales allowances.

2025 Class 1 (single) tariff — selected bands (unchanged for 2026)
Annual taxable income (€)Marginal rate
0 – 13,2300% (tax-free)
13,230 – 15,4358%
22,050 – 24,25512%
33,435 – 35,73022%
51,795 – 54,09038%
54,090 – 117,45039%
117,450 – 176,16040%
176,160 – 234,87041%
Over 234,87042%

The indexed tariff: why 2023, 2024 and 2025 differ

To stop inflation quietly pushing people into higher bands (cold progression), Luxembourg periodically shifts the whole tariff up by "index brackets" (tranches indiciaires). The 2024 budget neutralised 4 index brackets, lifting every threshold by about 10.4%, and the 2025 scale added a further 2.5, lifting them about another 6.4% — while the 0%-to-42% rate ladder stayed identical. That is why the tax-free band grew from €11,265 in 2023 to €12,438 in 2024 and €13,230 in 2025, and the 42% top band moved from €200,004 to €220,788 to €234,870. No new statutory tariff was confirmed for 2026, so this tool carries the 2025 scale forward. Selecting an earlier year applies that year’s exact thresholds, so the same salary shows a higher tax in 2023 than in 2025.

The employment-fund surcharge and social security

Two things sit alongside the headline income tax. First, the employment-fund surcharge (contribution au fonds pour l’emploi): a 7% solidarity tax charged on the tax due, rising to 9% once taxable income passes €150,000 (Class 1/1a) or €300,000 (Class 2). This calculator shows the statutory tariff before the surcharge, so add roughly 7% to reconcile with an official assessment. Second, employee social security of about 12.45% of gross — pension 8%, health (sickness) 3.05% and the dependency (long-term-care) contribution 1.4%. Pension and health are capped at the social-security ceiling (about €158,267 a year in 2025, five times the minimum social wage); the dependency contribution is uncapped. The calculator subtracts social security from your take-home but does not deduct it from the income-tax base.

Effective versus marginal tax rate

Your effective tax rate is your total income tax divided by your income — your real average. Your marginal rate is the rate on your next euro, set by the highest of the 23 bands you reach. Because Luxembourg has so many bands and a generous tax-free zone, the two diverge sharply: a single (Class 1) earner on €50,000 in 2025 has a 36% marginal rate but an effective income-tax rate of only about 14.7%. A married couple splitting €100,000 reaches the same 36% marginal band yet pays the same ~14.7% effective rate, because splitting halves the income that climbs the ladder. Knowing the gap helps you judge the real tax on a bonus, a raise or overtime.

Worked examples

Single (Class 1), €50,000, 2025

Inputs: €50,000 taxable income · Class 1

Result: ~€7,341 income tax · 14.7% effective · 36% marginal (add ~7% employment-fund surcharge)

Single (Class 1), €100,000, 2025

Inputs: €100,000 taxable income · Class 1

Result: ~€26,765 income tax · 26.8% effective · 39% marginal

Married (Class 2), €100,000, 2025

Inputs: €100,000 joint income · Class 2

Result: ~€14,683 income tax · 14.7% effective · 36% marginal — splitting roughly halves the tax

Glossary

Impôt sur le revenu
Luxembourg’s personal income tax, levied on a 23-band progressive tariff from 0% to 42%.
Tax class (classe d’impôt)
The category (1, 1a or 2) that sets which band thresholds apply, based on marital and family status.
Class 2 / income splitting
Joint taxation for married couples and civil partners: tax is computed on half the income and doubled, modelled as the Class 1 scale with doubled thresholds.
Employment-fund surcharge
The contribution au fonds pour l’emploi — a 7% (9% high-income) solidarity tax charged on the income tax due, not on income.
Index bracket (tranche indiciaire)
The inflation unit by which Luxembourg periodically shifts the whole tariff up to offset cold progression.
Dependency contribution
The assurance dépendance — a 1.4% long-term-care contribution that is uncapped and not deductible from the tax base.
Effective tax rate
Total income tax divided by total income — your true average tax rate.
Marginal tax rate
The rate applied to your next euro of income, set by the highest band you reach.

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