Luxembourg Income Tax Calculator 2026 — 23 Brackets + Impatriate
Calculate Luxembourg 2026 income tax across all 23 brackets (0%–42%), solidarity surcharge 7%/9%, CSPF social security 12.65%, tax classes (1/1a/2), and 50% impatriate exemption.
€
Employment income before deductions €
Combined income split equally for Class 2 Requires ≥€100K gross, new to Luxembourg
Examples:
€0
Net Take-Home (Annual)
€0
Income Tax + Solidarity
€0
CSPF Social Security
0%
Effective Tax Rate
Tax Bracket Breakdown (Top Brackets Active)
| Bracket | Rate | Income in Bracket | Tax |
|---|
Full Tax Summary
Luxembourg Income Tax System 2026
Luxembourg's income tax system is progressive with 23 brackets — one of the most granular in Europe. The solidarity surcharge increases the effective rate. Tax Class 2 provides income splitting for married couples, which can significantly reduce the combined tax bill for couples with unequal incomes.
Key Rates
0%: €0 – €11,265 | 8%: €11,265 – €13,137 | 10%: to €15,009
12%: to €16,881 | 14%: to €18,753 | 16%: to €20,625
18%: to €22,569 | 20%: to €24,513 | 22%: to €26,457
24%: to €28,401 | 26%: to €30,345 | 28%: to €32,289
30%: to €34,233 | 32%: to €36,177 | 34%: to €38,121
36%: to €40,065 | 38%: to €42,009 | 39%: to €43,953
40%: to €45,897 | 41%: to €100,000 | 42%: above €100,000
(Class 2: brackets doubled for joint income)
Solidarity: 7% on tax owed (9% if income >€150K)
CSPF Social Security: ~12.65% employee
12%: to €16,881 | 14%: to €18,753 | 16%: to €20,625
18%: to €22,569 | 20%: to €24,513 | 22%: to €26,457
24%: to €28,401 | 26%: to €30,345 | 28%: to €32,289
30%: to €34,233 | 32%: to €36,177 | 34%: to €38,121
36%: to €40,065 | 38%: to €42,009 | 39%: to €43,953
40%: to €45,897 | 41%: to €100,000 | 42%: above €100,000
(Class 2: brackets doubled for joint income)
Solidarity: 7% on tax owed (9% if income >€150K)
CSPF Social Security: ~12.65% employee
Example: €80,000 Class 1 (Single)
Gross: €80,000 | Class 1 | No impatriate
CSPF (12.65%): ~€8,984 | Taxable: ~€71,016
PIT ≈ €21,500 | Solidarity (7%): ~€1,505
Total tax+social: ~€31,989 | Net: ~€48,011 | Eff. 26.7%
CSPF (12.65%): ~€8,984 | Taxable: ~€71,016
PIT ≈ €21,500 | Solidarity (7%): ~€1,505
Total tax+social: ~€31,989 | Net: ~€48,011 | Eff. 26.7%
Extended
23-Bracket Visual + Class 1 vs 1a vs 2 Comparison
Full bracket chart and tax class comparison at your income level
Visual breakdown of income across Luxembourg's 23 tax brackets.
Comparing all three tax classes at your entered gross income (individual for Class 1/1a; combined with spouse for Class 2).
| Tax Class | Taxable Income | PIT + Solidarity | CSPF | Net Income | Eff. Rate |
|---|
Impact of the 50% impatriate exemption over 5 years for highly-skilled new arrivals (minimum €100,000 gross).
| Scenario | Taxable | PIT + Solidarity | Net | 5-Yr Cumulative Saving |
|---|
Frequently Asked Questions
How many income tax brackets does Luxembourg have?
Luxembourg has 23 progressive income tax brackets in 2026, ranging from 0% on income up to €11,265 all the way to 42% on income above €220,788. This is one of the most granular progressive tax systems in Europe. The solidarity surcharge (impôt de solidarité) adds 7% to the tax owed (9% for incomes above €150,000), making the effective top marginal rate approximately 45.78%.
What are the Luxembourg tax classes?
Luxembourg uses three tax classes: Class 1 for single persons; Class 1a for single parents with dependent children and persons aged 65 or over; and Class 2 for married persons and registered civil partners (PACS). Class 2 applies joint filing with income splitting, significantly reducing tax for couples with unequal incomes. Separated or divorced persons may retain Class 1a for the year of separation.
What is the Luxembourg impatriate tax regime?
Luxembourg offers a special tax regime for inpatriate workers (highly skilled employees transferred to Luxembourg for the first time). Under circular L.I.R. n° 95/2 of 2011 (revised), qualifying inpatriates can exclude 50% of their employment income from Luxembourg income tax for up to 5 years. To qualify, the employee must earn at least €100,000 gross annually and must not have been a Luxembourg resident or paid Luxembourg taxes in the previous 5 years.
What is the CSPF (social security) rate in Luxembourg?
Luxembourg social security contributions for employees total approximately 12.65% of gross salary: pension insurance 8%, sickness 3.05%, dependency insurance 1.4%, accident insurance 0.1% (employer only), and various minor contributions. The employee portion is roughly 12.65%. Employer contributions add approximately 12.1–14.2% more. There is a monthly contribution base ceiling of €12,306 for pension and certain other branches.
How does Luxembourg compare as an international financial center for taxation?
Luxembourg has long been a top EU financial center due to favorable holding company regimes, participation exemption (dividends and capital gains from qualifying subsidiaries are 80% exempt), and an extensive double tax treaty network (88+ treaties). For individual residents, the combination of Class 2 splitting, the 50% impatriate exemption, and relatively moderate social security makes it competitive for senior executives in financial services, even against Switzerland and Singapore.