Luxembourg Personal Income Tax
Detailed personal income tax rates and rules for Luxembourg.
Luxembourg applies a highly granular progressive income tax with 19 brackets ranging from 0% to 42%. A surcharge for the employment fund of 7% (9% for income above €150,000) is added to the tax liability. Luxembourg uses tax classes: Class 1 (single), Class 1a (single parent or 65+), and Class 2 (married or partners filing jointly). Significant deductions are available for mortgage interest, pension contributions, and insurance premiums.
| Income Range (EUR) | Tax Rate |
|---|---|
| €0 – €11K | 0% |
| €11K – €13K | 8% |
| €13K – €15K | 10% |
| €15K – €17K | 12% |
| €17K – €19K | 14% |
| €19K – €21K | 16% |
| €21K – €23K | 18% |
| €23K – €25K | 20% |
| €25K – €27K | 22% |
| €27K – €28K | 24% |
| €28K – €30K | 26% |
| €30K – €32K | 28% |
| €32K – €34K | 30% |
| €34K – €36K | 32% |
| €36K – €38K | 34% |
| €38K – €40K | 36% |
| €40K – €42K | 38% |
| €42K – €200K | 39% |
| €200K+ | 42% |
Filing Deadline
March 31 of the following year (extensions commonly granted)
Residency Rule
An individual is a Luxembourg tax resident if their domicile or habitual abode is in Luxembourg. Residents are taxed on worldwide income. Non-residents are taxed on Luxembourg-source income.
Additional Notes
Luxembourg offers an expatriate tax regime (impatriate regime) allowing qualifying employees to receive tax-free reimbursements for certain expenses related to their international assignment. Cross-border workers from Belgium, France, and Germany benefit from special bilateral arrangements regarding taxation of employment income.