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Ireland vs Luxembourg: tax rates compared

Between the two, Ireland's income tax rate (48%) tops Luxembourg's (45.8%) by 2.2pp. 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%IE 48%LU 45.8%
Income Tax, side by side
CountryRateSource
Ireland48%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+2.2 ppIreland higher

Corporate Tax

0102030405060World avg 22.6%IE 12.5%LU 23.9%
Corporate Tax, side by side
CountryRateSource
Ireland12.5%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−11.4 ppLuxembourg higherlargest gap on this page

Between the two, Luxembourg's corporate tax rate (23.9%) tops Ireland's (12.5%) by 11.4pp. The 201-country average is 22.6%: Ireland sits below it, Luxembourg sits above it.

VAT

0102030405060World avg 19.5%IE 23%LU 17%
VAT, side by side
CountryRateSource
Ireland23%Source: PWC Worldwide Tax Summaries — Ireland (Corporate, Other taxes) · as of 2026-03-06
Luxembourg17%Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13
Difference+6 ppIreland higher

Between the two, Ireland's VAT rate (23%) tops Luxembourg's (17%) by 6pp. The 37-country average is 19.5%: Ireland sits above it, Luxembourg sits below it.

Wealth Tax

0102030405060World avg 0.1%IE 0%LU 0%
Wealth Tax, side by side
CountryRateSource
Ireland0%Source: PWC Worldwide Tax Summaries — Ireland (Individual, Other taxes) · as of 2026-03-06
Luxembourg0%Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13
Difference0 ppdisplayed rates match

There's no gap here — Ireland and Luxembourg both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.

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