Country tax profile · 2026
Luxembourg income tax
How Luxembourg taxes income
Luxembourg taxes personal income at rates up to 45.78%. Residents are taxed on worldwide income; the inbound expat regime exempts 50% of gross salary.
Compiled by MyNomadWorld for Luxembourg and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
Luxembourg income tax brackets (2026)
| Taxable income | Rate |
|---|---|
| up to 12,438 EUR | 0% |
| up to 23,932 EUR | 10% |
| up to 45,897 EUR | 24% |
| up to 100,002 EUR | 38% |
| up to 234,870 EUR | 40% |
| over the top bracket | 42% |
National brackets; local or regional surcharges may apply on top.
How Luxembourg's income tax compares
Luxembourg's top income tax of 45.78% is the 17th highest of the 197 countries we track, against a global average of 27.9% and a Europe average of 30.8%.
Countries with a similar income tax
Iceland (46.29%) · Curaçao (46.5%) · United Kingdom (45%) · Germany (45%) · France (45%) · Switzerland (45%)
Who is a tax resident of Luxembourg?
Domicile or habitual abode (customary residence) in Luxembourg, generally presence over 6 months (worldwide taxation).
Related Luxembourg taxes
Moving to Luxembourg?
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What is the income tax rate in Luxembourg?
Luxembourg taxes personal income at rates up to 45.78%. Residents are taxed on worldwide income; the inbound expat regime exempts 50% of gross salary.
Can expats pay less income tax in Luxembourg?
Yes. Under the Impatriate regime regime, qualifying new residents pay about 25.0% instead of the 45.78% headline rate.