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About Luxembourg tax

Luxembourg's income tax is calculated on an annual basis and split into 23 brackets, running from 8% at the bottom to 42% above €220,788/year. Most professionals with one income source fall into Class 1 (single) or Class 2 (married). Employee CNSS contributions cover pension (8%), health (3.05%), and dependency insurance (1.4%), totalling 12.45% on top of income tax.

Luxembourg's cost of living is high — particularly housing in Luxembourg City — so nominal take-home figures are partly absorbed by rent. Cross-border workers from France, Germany, and Belgium (who make up nearly half the workforce) pay Luxembourg tax but live cheaper abroad, often making them the biggest financial winners in the Grand Duchy's labour market.

Use the Luxembourg salary calculator →