Take-Home Pay in Luxembourg
| Yearly | Monthly | Weekly | |
|---|---|---|---|
| Salary Before Tax | |||
| Salary After Tax | Enter salary | ||
Simply enter your annual or monthly income into the salary calculator above to find out how taxes in Luxembourg affect your income. You'll then get a breakdown of your total tax liability and take-home pay.
- Salary Before Tax
- your total earnings before any taxes have been deducted. Also known as Gross Income.
- Salary After Tax
- the money you take home after all taxes and contributions have been deducted. Also known as Net Income.
Income Tax Breakdown
| Yearly | Monthly | |
|---|---|---|
| Income Tax | ||
| Pension Contributions | ||
| Health Insurance | ||
| Long-Term Care Insurance | ||
| Total Tax Due |
- Total Tax Due
- the sum of all taxes and contributions that will be deducted from your gross salary.
The deductions used in the calculator assume you are not married and have no dependents. You may pay less if tax credits or other deductions apply.
Taxation in Luxembourg
- Income Tax
- is a progressive tax that ranges from 0% to 42%. The first €11,265 of your salary are not taxed. The Employment Fund Surcharge increases the income tax by 7% for earnings not exceeding €150,000, or by 9% if the income is above that threshold. The calculation of income tax depends on the taxable income and family status of the taxpayer.
- Social Security Contributions
-
are computed on the employee's yearly gross salary.
The employer withholds the employee's social security contributions at source and remits the total amount to the social security
authorities.
The social security contributions include:
- Pension contributions: 8% of the total income, capped at an income of €132,116 per year.
- Compulsory health insurance: 3.05% of the total income, capped at an income of €132,116 per year.
- Long-term care insurance: 1.4% of the total income, not capped, but the first €6,606 are not taxed.
The information presented here is based on the fiscal regulations in Luxembourg in 2021. Visit impotsdirects.public.lu for more details.
Financial Facts About Luxembourg
The average monthly gross salary in Luxembourg is €5,411, according to the latest data from the National Institute of statistics and economic studies of the Grand Duchy of Luxembourg (STATEC). This corresponds to an average annual salary of €64,932 before taxes, the highest in the European Union. If we put this amount into our tax calculator, we can see that the average worker in Luxembourg parts with about €1,712 in taxes and contributions per month, which results in a net monthly salary of €3,699.
In 2022, Luxembourg's minimum wage is set to €2,313 per month for unskilled workers and €2,776 per month for skilled workers, which equates to a yearly gross salary of €27,756 and €33,312, respectively. These minimum wage figures correspond to a monthly take-home pay of €1,909 for unskilled workers and €2,233 for skilled workers, as estimated by our Luxembourg salary tax calculator.
Employees' salaries are generally taxed at source, which means that income tax and social security contributions are deducted monthly from the gross salary directly by employers. The calculation of income tax depends on the individual's taxable income and family status.
Luxembourg has one of the lowest corporate tax rates in Europe, which attracts many foreign corporations to set up their headquarters there. At the same time, the country is consistently ranked among the least corrupt in the world. Its capital, Luxembourg City, is one of the three official capitals of the European Union. It is a friendly and multilingual country with over 200K immigrants, or about 44.5% of its population.
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