Tax Calculation

How does this tax calculator work?

The calculation is based on the progressive tax rate applicable to natural persons in Luxembourg for the tax years 2018 to 2024.
This tax rate comprises several tax brackets: the higher your income, the higher your marginal tax rate.

The calculation takes into account the following tax brackets:

• Class 1: Single individuals, divorced and widowed individuals without children (after transition phase),
• Class 1A: Single individuals or widows/widowers with dependants (especially children),
• Class 2: Married couples or partners who are assessed jointly.

What is Luxembourg's employment fund (Fonds pour l'Emploi)?

The Employment Fund is a mandatory contribution managed by Luxembourg's Ministry of Labour to support job creation, worker reintegration, and employment protection programs. This additional tax is calculated on top of your regular income tax:

• For most taxpayers, this means an increase in the tax owed of 7%.
• For high incomes (150.000€ and above for class 1/1a and 300.000€ and above for class 2), it rises to 9%.

What results does our tax simulator provide?

• Tax according to tax table: Amount calculated based on your income, tax bracket and the tax brackets applicable for the relevant tax year.
• Employment fund: additional amount calculated on the basis of your tax.
• Total tax amount: Sum of calculated tax and employment fund.
• Average tax rate: Average percentage of taxes paid on your total income.

Why should you use our simulator?

• To better understand the impact of your income on your tax burden,
• To anticipate your tax obligations and avoid unpleasant surprises,
• In order to compare different situations (single, married, with or without children)
• To plan your budget according to your expected tax burden.