LU · Europe · EUR
Luxembourg
Tax rates
Income Tax
45.8%
Top rate, progressive scale
Corporate Tax
23.9%
Statutory rate
Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01VAT
17%
Standard rate
Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13Capital Gains Tax
0%
Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13Crypto Tax
0%
Wealth Tax
0%
Not levied
Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13
Estimate your income tax
Enter a gross annual salary to estimate 2026 national income tax for Luxembourg using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.
The calculator needs JavaScript — every figure stays readable without it. The full bracket schedule is under Brackets & notes below, and the calculator page lists every country's schedule.
Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| EUR 0 | 0% |
| EUR 13,230 | 8% |
| EUR 15,435 | 9% |
| EUR 17,640 | 10% |
| EUR 19,845 | 11% |
| EUR 22,050 | 12% |
| EUR 24,255 | 14% |
| EUR 26,550 | 16% |
| EUR 28,845 | 18% |
| EUR 31,140 | 20% |
| EUR 33,435 | 22% |
| EUR 35,730 | 24% |
| EUR 38,025 | 26% |
| EUR 40,320 | 28% |
| EUR 42,615 | 30% |
| EUR 44,910 | 32% |
| EUR 47,205 | 34% |
| EUR 49,500 | 36% |
| EUR 51,795 | 38% |
| EUR 54,090 | 39% |
| EUR 117,450 | 40% |
| EUR 176,160 | 41% |
| EUR 234,870 | 42% |
National schedule only, for Tax Class 1 (single persons), 2025 scale. The headline rate above additionally reflects Luxembourg's solidarity tax surcharge of 9% of tax due (for taxable income above EUR 150,000 in Tax Class 1/1a), applied on top of this schedule rather than folded into it.
VAT
In practice
- Filing
Resident taxable persons are in principle required to register for VAT, though a person earning less than EUR 50,000 per year (an exemption threshold increased effective 1 January 2025) may instead qualify for the small-undertakings VAT exemption and file a single annual return. VAT returns are otherwise filed monthly, with quarterly or annual filing available by derogation.
Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13- Exemptions
Banking, financial, insurance, and reinsurance transactions are generally exempt, with input VAT on related costs recoverable only where the services are performed for customers established outside the EU. Other VAT-exempt transactions, such as exports and related transport, allow the supplier to recover input VAT on related costs.
Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13
Capital Gains Tax
Capital gains on movable property, including listed securities, held more than six months are not taxed for individuals unless the seller holds a 'material interest' — more than 10% of the company's capital, directly or indirectly, at any point in the preceding five years. Gains on a material interest held over six months are taxed as extraordinary income at half the average combined tax rate, up to 22.89%.
Crypto Tax
Luxembourg treats virtual currencies such as bitcoin as intangible property. Outside of a commercial activity, a gain on exchanging or disposing of virtual currency is treated as taxable speculative income, added to ordinary taxable income, only if the currency was held six months or less and total speculative profit for the year reaches EUR 500; gains on virtual currency held longer than six months, or below that annual threshold, are not taxed.
Wealth Tax
No net wealth tax levied on individuals. Net wealth tax was abolished from 1 January 2006 for individual (resident and non-resident) taxpayers; it continues to apply to corporate entities only, which is out of scope for this dataset.