Luxembourg income tax law for 2019 Luxembourg Income Tax Rates for 2019

Luxembourg Income Tax Brackets

Tax Bracket (yearly earnings) Tax Rate (%)
€0 - €11,265 0.00%
€11,265 - €13,173 8.00%
€13,173 - €15,081 10.00%
€15,081 - €16,989 12.00%
€16,989 - €18,897 14.00%
€18,897 - €20,805 16.00%
€20,805 - €22,713 18.00%
€22,713 - €24,621 20.00%
€24,621 - €26,529 22.00%
€26,529 - €28,437 24.00%
€28,437 - €30,345 26.00%
€30,345 - €32,253 28.00%
€32,253 - €34,161 30.00%
€34,161 - €36,069 32.00%
€36,069 - €37,977 34.00%
€37,977 - €39,885 36.00%
€39,885 and up 38.00%

Luxembourg has a bracketed income tax system with seventeen income tax brackets, ranging from a low of 0.00% for those earning under €11,265 to a high of 38.00% for those earning more then €39,885 a year.

How does the Luxembourg Income Tax compare to the rest of the world?

Out of the thirty four countries tracked, fifteen have a higher maximum income tax rate then Luxembourg. Countries with similar tax brackets include France with a maximum tax bracket of 40.00%, Japan with a maximum tax bracket of 40.00% and Chile with a maximum tax bracket of 40.00%. Keep in mind that our ranking measures only nationwide income taxes, and does not account for local income taxes at state, province, or municipal levels.

Luxembourg Income Taxes
Maximum Income Tax Income Tax Allowance World Tax Rank
38.00% €1,416 ($0 USD) 16th of 34

What is the Luxembourg Income Tax?

Luxembourg's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of Luxembourg. Failure to pay, or underpayment of, the Luxembourg income tax can result in high fees, fines, or jail time.

In addition to Luxembourg's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes.

Luxembourg Income Tax Allowance

Luxembourg provides most taxpayers with an income tax allowance of €1,416, which can be kept as a tax-free personal allowance. Luxembourg's tax credit is a basic (fixed) allowance available to all (single) taxpayers without dependents. an additional 300€ nonwastable tax credit is available.

A tax credit is a fixed amount of money that may be kept by taxpayers without paying any income taxes. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated.


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