How pay after tax works in Luxembourg
Luxembourg applies a finely graduated income tax scale that rises from 0% to 42% across many small brackets, topped by a solidarity surcharge that funds the employment fund. What most affects your result is your tax class: class 1 for single people, class 1a for single parents and some others, and class 2 for married and partnered couples who are jointly assessed, which is usually the most favourable.
Social security contributions for pension, health and long-term care are deducted from gross pay, and a set of tax credits (including the employee credit, the CIS) are added back to reduce the tax due. The calculator applies the scale, the surcharge, social security and the credits for your class so you can see your net salary.
What this calculator works out
- Income tax on the full graduated scale
- The solidarity surcharge for the employment fund
- Social security (pension, health, long-term care)
- Tax classes 1, 1a and 2 and the employee tax credits