Your Total Income After Tax
|Salary Before Tax|
|Salary After Tax||Please 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.
Your Income Tax Breakdown
|Social Security Contributions|
|Total Tax Due||Please enter salary|
- 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 dependants. 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 EUR of your salary are not taxed. The Employment Fund surcharge increases the income tax to 7% for earnings not exceeding 150 000 EUR or to 9% if the income is above the threshold. The calculation of the income taxes depends on the taxable income and the individual's family status.
- Social Security Contributions
- is computed on an 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 - 8% of the total income, capped at an income of 132 000 EUR per annum.
- Health care - 3.05% of the total income, capped at an income of 132 000 EUR per annum.
- Dependence - 1.4% of the total income, not capped, but the first 6 606 EUR 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 net salary in Luxembourg (LU) is around 3 367 EUR, with a minimum income of 1 922 EUR per month. This places Luxembourg on the 1st place in the International Labour Organisation statistics for 2012.
In Luxembourg, the income is subject to a pay-as-you-earn (PAYE) system. The taxes (social security contributions and income tax) are deducted monthly from the gross salary by the employers on behalf of the employees. The calculation of income taxes depends on the taxable income and the individual's family status.
Luxembourg is considered a tax haven country, this being the reason why many foreign corporations have headquarters there. The tax system in Luxembourg allows these companies to cut billions from tax bills and it charges them a very low tax rate to send money into and out of the country.
Luxembourg is the ninth-least-corrupt country in the world. Its capital, LU 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.