TaxGlass

DE · Europe ↔ LU · Europe

Germany vs Luxembourg: tax rates compared

Germany has an income tax rate of 47.5%, 1.7pp above Luxembourg's 45.8%. The 37-country average is 43.2%: both sit above it.

Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.

Income Tax

0102030405060World avg 43.2%DE 47.5%LU 45.8%
Income Tax, side by side
CountryRateSource
Germany47.5%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Luxembourg45.8%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Difference+1.7 ppGermany higher

Corporate Tax

0102030405060World avg 22.6%DE 30.1%LU 23.9%
Corporate Tax, side by side
CountryRateSource
Germany30.1%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Luxembourg23.9%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference+6.2 ppGermany higherlargest gap on this page

Germany has a corporate tax rate of 30.1%, 6.2pp above Luxembourg's 23.9%. The 201-country average is 22.6%: both sit above it.

VAT

0102030405060World avg 19.2%DE 19%LU 17%
VAT, side by side
CountryRateSource
Germany19%Source: OECD Tax Database — VAT/GST standard rates · as of 2023-09-01
Luxembourg17%Source: OECD Tax Database — VAT/GST standard rates · as of 2023-09-01
Difference+2 ppGermany higher

Germany has a VAT rate of 19%, 2pp above Luxembourg's 17%. The 37-country average is 19.2%: both sit below it.

Wealth Tax

0102030405060World avg 0.1%DE 0%LU 0%
Wealth Tax, side by side
CountryRateSource
Germany0%Source: PWC Worldwide Tax Summaries — Germany (Individual, Other taxes) · as of 2026-06-30
Luxembourg0%Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13
Difference0 ppdisplayed rates match

Germany and Luxembourg share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.

Not covered for both countries yet: Capital Gains Tax, Crypto Tax.