Luxembourg taxes income through a steeply progressive schedule combined with a tax-class system that adjusts liability by family situation. This calculator applies the progressive rate schedule, the income-splitting used by class 2, and the solidarity surcharge that tops up the final bill.
How it works
The progressive schedule rises in many small steps from 0 percent up to 42 percent. The tax class changes how income flows through it:
class 1 (single): schedule applied to full taxable income
class 1a: lighter treatment for single parents / over-64
class 2 (married): income split in half, tax on half, then doubled
solidarity surcharge = income tax × 7% (9% for high incomes)Income splitting in class 2 is the key benefit: applying progressive rates to half the income and doubling pulls the couple into lower marginal bands. The solidarity surcharge funds the employment fund and is added on top of the computed income tax.
Example
A single (class 1) taxpayer with 60,000 EUR taxable income owes roughly 13,000 EUR in income tax under the schedule, plus a 7 percent solidarity surcharge of about 910 EUR, for a total near 13,910 EUR. A married couple (class 2) on the same 60,000 would pay substantially less because of splitting.
Notes
This uses a close approximation of the Luxembourg schedule; the official tables update periodically. Enter income after social-security contributions. Confirm exact liability with the ACD.