All the deductions going up in Luxembourg's 2028 tax reform

Beyond the unified tax class, Luxembourg's 2028 reform increases several deduction limits. Here's a complete list of what's changing.

The headline of Luxembourg's tax reform is the new unified class. But buried in the details are several deduction increases that could mean extra savings, especially if you have insurance, a home savings plan, children, or care responsibilities.

Here's everything that's going up.

Insurance premiums & personal loan interest

Description	Amount
Old limit:	€672 per person in your household
New limit:	€900 per person in your household
Increase:	+34%

This covers life insurance premiums, certain other insurance contributions, and deductible loan interest. The government estimates this will cost €20 million per year.

Home savings plans (Bausparvertrag)

Ages 18-40:

• Old limit: €1,344 → New limit: €1,500 (+12%) per person in your household

Greater than 40:

• Old limit: €672 → New limit: €900 (+34%) per person in your household

If you're building up savings toward buying property, this is a nice bump.

Childcare, help & dependency care

Description	Amount
Old limit:	€5,400
New limit:	€6,000
Increase:	+11%

This flat-rate allowance covers childcare costs, the cost of domestic help, and care costs related to dependency (e.g., caring for elderly parents).

NEW: Petite enfance deduction

Amount: €5,400 per child under 3 (€450/month)

This is brand new, it didn't exist before. Separate from the childcare allowance above. Shared between separated parents.

NEW: Spouse pension contributions

If your spouse has reduced or stopped working (e.g., to care for children), you can now deduct contributions you make to their voluntary pension insurance. This helps protect their pension rights long-term.

Single-parent tax credit

Description	Amount
Old amount:	€3,504
New amount:	€4,008
Increase:	+14%

Children outside the household

Description	Amount
Old amount:	€5,424
New amount:	€5,928
Increase:	+9%

For parents paying support for children who don't live with them.

Extraordinary expenses

The income brackets used to calculate deductions for unavoidable extraordinary expenses have been broadened, and the "normal" expense threshold reduced for several categories. The cost is modest (€1m/year) but it's a structural improvement for those facing exceptional financial burdens.