Luxembourg Tax Tools
Luxembourg Income Tax Calculator
Estimate your annual Luxembourg income tax based on your adjusted taxable income and tax class. This calculator is designed to help you understand the progressive tax system and compare estimated tax amounts.
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Estimated annual income tax, including surcharge
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Tax Guide
How to Use the Luxembourg Income Tax Calculator
1. Enter your adjusted taxable income
Enter your annual adjusted taxable income in euros. This is the income used to calculate tax after the applicable adjustments and deductions. It is not necessarily equal to your gross annual salary. If you only know your gross salary, obtain an estimate of your taxable income before relying on the result.
2. Choose your tax class
Select Class 1, Class 1a or Class 2 according to your tax status. Each class has its own calculation rules. Your Luxembourg tax card or the tax administration can help you confirm the correct class.
3. Check the Employment Fund surcharge
The calculator can apply the usual surcharge threshold automatically, or you can select 7% or 9% to test a specific assumption. If you are unsure which rate applies, keep the automatic setting.
4. Calculate your estimated tax
Select Calculate Income Tax to see the estimated tax before the surcharge, the surcharge amount, the combined total, and the effective tax rate. The remaining-income figure subtracts this estimated income tax only; it is not your net salary.
The result depends on the taxable-income figure you enter. Personal deductions, tax credits, family circumstances and other rules can change your final liability.
Understanding Luxembourg Tax Classes
Tax Class 1
Class 1 generally applies to taxpayers who do not qualify for Class 1a or Class 2. Tax is calculated using the progressive income-tax tariff, with higher rates applying to higher portions of taxable income.
Tax Class 1a
Class 1a can apply to certain eligible taxpayers, including some widowed people, single parents and people aged 64 or older at the beginning of the tax year. Eligibility depends on the applicable legal conditions. Its tax calculation differs from Class 1.
Tax Class 2
Class 2 generally applies to eligible jointly assessed married taxpayers and certain eligible partners. The standard splitting method calculates tax on half of the relevant combined taxable income and then doubles the result.
Read the official Luxembourg income-tax tariff and the official tax-class guidance to check the applicable rules.
Frequently Asked Questions
1. How does income tax work in Luxembourg?
Luxembourg uses a progressive income-tax tariff. Different portions of adjusted taxable income are taxed at different rates. Your tax class, eligible deductions and tax credits can affect the final amount.
2. What is adjusted taxable income?
Adjusted taxable income is the amount used to apply the relevant income-tax tariff after the adjustments required by tax law. It can differ from gross salary because deductible contributions, expenses and allowances may affect the calculation.
3. What are the income tax classes in Luxembourg?
The three main classes are Class 1, Class 1a and Class 2. The appropriate class depends on circumstances such as marital status, dependent children, age and eligibility for joint assessment.
4. How is tax calculated for Class 2?
Under the standard splitting method, the tax tariff is applied to half of the relevant combined taxable income, and the resulting tax is doubled. Your eligibility for Class 2 and the income included in the calculation must be checked under the applicable rules.
5. Is Class 1a tax calculated in the same way as Class 1?
No. Class 1a has a special calculation based on Luxembourg’s income-tax rules. Its result can differ from Class 1 at the same taxable income. Eligibility for Class 1a must also be established.
6. What is the Employment Fund surcharge?
It is an additional charge calculated as a percentage of income tax. The usual rate is 7%, with a 9% rate applying above the relevant income threshold. The applicable threshold depends on the tax class.
7. Does this calculator include social security contributions?
No. This page estimates income tax and the Employment Fund surcharge. Employee pension, health and dependency contributions are not deducted from the remaining-income figure shown here.
8. Is the result my final tax bill?
No. It is an estimate based on the income and options entered. Tax credits, deductible expenses, family circumstances, other income and individual tax rules may change the amount ultimately payable.
9. Can I enter my gross salary directly?
You can enter a number, but the calculator treats it as adjusted taxable income. Gross salary and taxable income are not necessarily the same. For a more meaningful estimate, use the taxable-income figure from your tax documents where available.
10. Where can I find official Luxembourg tax information?
Consult the Administration des contributions directes for tax tariffs and the Guichet.lu government portal for general tax guidance.
Disclaimer: This tool provides general estimates and educational information, not tax, legal or financial advice. Check your individual situation against current official rules or consult a qualified Luxembourg tax professional.