Manage Payroll Tax in Luxembourg

Taxes in Luxembourg

Learn how employment taxes affect your payroll and your employees’ paychecks in Luxembourg.

Employer

12.04 - 14.99 %

Social security contribution

Employee

(capped to a max. pay of €135,417)

8 %

pension contribution

2.8 - 3.05 %

sickness benefit contribution

1.4 %

dependence insurance charged on monthly wages, less €535.50 per month

Personal income tax rates

0 %

Up to €11,265

8 %

€11,265 - 13,173

10 %

€13,173 - 15,081

12 %

€15,081 - 16,989

14 %

€16,989 - 18,897

16 %

€18,897 - 20,805

18 %

€20,805 - 22,713

20 %

€22,713 - 24,621

22 %

€24,621 - 26,529

24 %

€26,529 - 28,437

26 %

€28,437 - 30,345

28 %

€30,345 - 32,253

30 %

€32,253 - 34,161

32 %

€34,161 - 36,069

34 %

€36,069 - 37,977

36 %

€37,977 - 39,885

38 %

€39,885 - 41,793

39 %

€41,793 - 100,000

40 %

€100,002 - €150,000

41 %

€150,000 - €200,004

42 %

€200,004+

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Taxes in Luxembourg