Luxembourg · Salary
Net salary in Luxembourg: tax class 1, social security and tax credits
Luxembourg taxes salaries on a progressive scale from 0% to 42%, plus a 7% employment fund surcharge on the tax. Employees pay about 13% social security. A single person in tax class 1 earning €60,000 keeps about €3,675 a month.
Tax classes
| Class | Who |
|---|---|
| 1 | Single people without children |
| 1a | Single parents, widowed people and people aged 65 or over |
| 2 | Married couples and civil partners taxed jointly |
Class 2 is much cheaper for couples with very different incomes. A reform approved in principle will replace the classes with one individual tariff from 2028, with the first €26,650 tax-free. Couples married before 2028 can keep joint taxation for a long transition period.
What comes off your salary
- Pension insurance: 8.5% (up from 8% in 2026).
- Health insurance: 3.05%.
- Dependency insurance: 1.4% on salary above an allowance of about €700 a month.
- Income tax on salary after social security and two flat deductions (€540 for work costs, €480 for special expenses), plus 7% employment fund surcharge (9% above €150,000).
- Tax credits: an employee credit (CIS) of up to €600 and a CO2 credit of up to €216 a year, both phased out between €40,000 and €80,000.
Net pay at four salaries
| Gross per year | Net per year | Net per month | You keep |
|---|---|---|---|
| €50,000 | €38,762 | €3,230 | 78% |
| €60,000 | €44,105 | €3,675 | 74% |
| €80,000 | €53,764 | €4,480 | 67% |
| €120,000 | €73,811 | €6,151 | 62% |
Tax class 1, 2026 rules, no further deductions. Social security is capped at five times the social minimum wage, about €13,857 a month.
Cross-border workers
About half of Luxembourg's workforce lives in France, Belgium or Germany. If you are one of them, you are taxed in Luxembourg on your salary but may be placed in class 1 even if married. You can ask to be treated as a resident if at least 90% of your household's professional income is taxed in Luxembourg, which often moves couples into class 2.
Things to know
- Inpatriate regime: highly paid new arrivals recruited from abroad can have part of their salary exempt for up to eight years. Check the current conditions with your employer.
- Savings interest from Luxembourg banks is taxed with a final 20% withholding tax (Relibi).
- Deductions you can claim: private pension savings (within an annual limit), interest on a home loan, and insurance premiums.
Calculate your Luxembourg net salary →
Sources
This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email [email protected].