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United States vs Luxembourg Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
United States37%Lower
Luxembourg42%
Corporate Tax
United States21%Lower
Luxembourg23.9%
Capital Gains
United States20%Lower
Luxembourg21%
VAT / Sales Tax
United States0%Lower
Luxembourg17%
| Category | United States | Luxembourg |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 37% | 42% |
| Corporate Tax | 21% | 23.9% |
| Capital Gains | 20% | 21% |
| VAT / Sales Tax | 0% | 17% |
| Crypto Tax | Yes | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 65 | 85 |
| Currency | USD | EUR |
The bottom line: United States vs Luxembourg
United States has the lower headline rate on 4 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. United States runs a progressive tax system, while Luxembourg uses a progressive one. Luxembourg has the wider tax-treaty network (85 agreements), which can reduce withholding tax on cross-border income.
- Income tax: United States is lower (37% vs 42%)
- Corporate tax: United States is lower (21% vs 23.9%)
- Capital gains tax: United States is lower (20% vs 21%)
- VAT / sales tax: United States is lower (0% vs 17%)