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Japan vs Luxembourg: tax rates compared
Japan's income tax rate is 10.1pp higher than Luxembourg's (55.9% vs 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 | JP | LU | Difference |
|---|---|---|---|
| Income Tax | 55.9% | 45.8% | JP +10.1 pp |
| Corporate Tax | 29.7% | 23.9% | JP +5.8 pp |
| VAT | 10% | 17% | LU +7 pp |
| Capital Gains Tax | 20.3% | 0% | JP +20.3 pp |
| Crypto Tax | 55% | 0% | JP +55 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 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 | Japan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 29.7% | 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 | +5.8 pp | Japan higher |
Japan's corporate tax rate is 5.8pp higher than Luxembourg's (29.7% vs 23.9%). The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Japan | 10% | Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | −7 pp | Luxembourg higher |
Luxembourg's VAT rate is 7pp higher than Japan's (17% vs 10%). The 181-country average is 15%: Japan sits below it, Luxembourg sits above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | +20.3 pp | Japan higher |
Japan's capital gains tax rate is 20.3pp higher than Luxembourg's (20.3% vs 0%). The 175-country average is 10.3%: Japan sits above it, Luxembourg sits below it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 55% | Source: PWC Japan — Japan Tax Update: Overview of 2026 Tax Reform Proposals (December 2025) · as of 2025-12-19 |
| 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 | +55 pp | Japan higher |
Japan's crypto tax rate is 55pp higher than Luxembourg's (55% vs 0%). The 88-country average is 13%: Japan sits above it, Luxembourg sits below it. Japan's figure is dated 2025-12-19 and Luxembourg's 2018-07-26, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Japan's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it.