Personal Income Tax 2026 – Luxembourg
Progressive tax system with rates from 0% to 42%. Tax credits and allowances significantly reduce effective tax burden. Solidarity surcharge 7-9% applies on tax amounts for higher earners.
Personal Income Tax 2026
Progressive tax system with rates from 0% to 42%. Tax credits and allowances significantly reduce effective tax burden. Solidarity surcharge 7-9% applies on tax amounts for higher earners.
Progressive Tax Brackets 2026
First €13,230 of annual income tax-free for everyone. Includes employment income, business income, pensions, and other taxable income.
8% (€13,230-€20,818), 9% (€20,818-€34,513), 10% (€34,513-€66,612), 11% (€66,612-€99,266), 12% (€99,266-€200,000). Gradual progression.
Income exceeding €200,000 taxed at 42%. One of Europe's highest thresholds for top rate. Additional solidarity surcharge applies.
Tax Credits and Allowances
Automatic credit for employed persons. Reduces final tax liability. Applied after calculating tax on taxable income.
Ensures minimum credit even for lower earners. Combined with employment credit can significantly reduce tax for modest incomes.
Single individuals living alone receive €4,500 allowance. Married couples receive €9,000. Reduces taxable income.
Solidarity Surcharge
7% surcharge on annual tax liability between €12,439-€15,548 (Class 1) or €24,878-€31,095 (Class 2). Applied to tax amount, not income.
9% surcharge on tax exceeding €15,548 (Class 1) or €31,095 (Class 2). Increases effective tax rate for high earners.
Tax Classes
Default for unmarried individuals without children. Standard allowances and brackets apply.
Joint taxation option. Brackets effectively doubled. More favorable for couples with income disparity. Can save significant tax.
For single parents with dependent children. Additional allowances. More favorable than standard Class 1.
Calculate Your Tax in Luxembourg
Free calculator: net income and effective tax rate in seconds
Open Calculator