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Denmark vs Luxembourg: tax rates compared
Denmark has an income tax rate of 55.9%, 10.1pp above Luxembourg's 45.8%. The 200-country average is 28%: both sit above it.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | DK | LU | Difference |
|---|---|---|---|
| Income Tax | 55.9% | 45.8% | DK +10.1 pp |
| Corporate Tax | 22% | 23.9% | LU +1.9 pp |
| VAT | 25% | 17% | DK +8 pp |
| Capital Gains Tax | 42% | 0% | DK +42 pp |
| Crypto Tax | 57% | 0% | DK +57 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +10.1 pp | Denmark higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 22% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −1.9 pp | Luxembourg higher |
Luxembourg has a corporate tax rate of 23.9%, 1.9pp above Denmark's 22%. The 201-country average is 22.6%: Denmark sits below it, Luxembourg sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Denmark | 25% | Source: PWC Worldwide Tax Summaries — Denmark (Corporate, Other taxes) · as of 2026-02-25 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +8 pp | Denmark higher |
Denmark has a VAT rate of 25%, 8pp above Luxembourg's 17%. The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 42% | Source: PwC Worldwide Tax Summaries — Denmark, Individual - Taxes on personal income · as of 2026-06-25 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | +42 pp | Denmark higher |
Denmark has a capital gains tax rate of 42%, 42pp above Luxembourg's 0%. The 175-country average is 10.3%: Denmark sits above it, Luxembourg sits below it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 57% | Source: Skattestyrelsen, Den juridiske vejledning C.C.2.1.3.3.5.1 — Generelt om krypto · as of 2026-07-19 |
| Luxembourg | 0% | Source: Luxembourg Direct Tax Administration (Administration des contributions directes) — Circular L.I.R. n° 14/5 – 99/3 – 99bis/3 (26 July 2018), "Monnaies virtuelles" · as of 2018-07-26 |
| Difference | +57 pp | Denmark higher |
Denmark has a crypto tax rate of 57%, 57pp above Luxembourg's 0%. The 88-country average is 13%: Denmark sits above it, Luxembourg sits below it. Denmark's figure is dated 2026-07-19 and Luxembourg's 2018-07-26, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 0% | Source: PWC Worldwide Tax Summaries — Denmark (Individual, Other taxes) · as of 2026-06-25 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Denmark and Luxembourg share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.