LU · Europe ↔ GB · Europe
Luxembourg vs United Kingdom: tax rates compared
Luxembourg has an income tax rate of 45.8%, 0.8pp above United Kingdom's 45%. 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
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| United Kingdom | 45% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +0.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| United Kingdom | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −1.1 pp | United Kingdom higher |
United Kingdom has a corporate tax rate of 25%, 1.1pp above Luxembourg's 23.9%. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 17% | Source: OECD Tax Database — VAT/GST standard rates · as of 2023-09-01 |
| United Kingdom | 20% | Source: OECD Tax Database — VAT/GST standard rates · as of 2023-09-01 |
| Difference | −3 pp | United Kingdom higherlargest gap on this page |
United Kingdom has a VAT rate of 20%, 3pp above Luxembourg's 17%. The 37-country average is 19.2%: Luxembourg sits below it, United Kingdom sits above it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| United Kingdom | 0% | Source: PWC Worldwide Tax Summaries — United Kingdom (Individual, Other taxes) · as of 2025-12-24 |
| Difference | 0 pp | displayed rates match |
Luxembourg and United Kingdom share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it. Luxembourg's figure is dated 2026-01-13 and United Kingdom's 2025-12-24, so the two rates come from different data vintages.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.