Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 1,160
Health care
- € 35.38
Pension
- € 92.80
Total tax
- € 128
Net pay
* € 1,032
Marginal tax rate
11.1%
Average tax rate
11.1%
89.0%
Net pay
11.1%
Total tax
Total tax
Net pay
The Taxberg
€ 1,032
Net pay
€ 177
Tax the employer pays
€ 128
Tax you pay
Total tax paid
€ 306
Did you know your employer also pays tax on your salary? It costs the employer € 177 to pay you € 1,160. In other words, every time you spend € 10 of your hard-earned money, € 2.64 goes to the government.
Real tax rate
22.9%
So, with you and the employer both paying tax, what used to be a 11.1% tax rate now rises to 22.9%, meaning your real tax rate is actually 11.8% higher than what it seemed at first.
Summary
If you make € 1,160 a year living in Luxembourg, you will be taxed € 128. That means that your net pay will be € 1,032 per year, or € 85.99 per month. Your average tax rate is 11.1% and your marginal tax rate is 11.1%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of € 100 in your salary will be taxed € 11.05, hence, your net pay will only increase by € 88.95.
Bonus Example
A € 1,000 bonus will generate an extra € 890 of net incomes. A € 5,000 bonus will generate an extra € 4,448 of net incomes.
Compare average tax
Latin America
Country 
Net pay
Average tax
Rank
Mexico
EUR 1,132
2.4%
1
Brazil
EUR 1,073
7.5%
2
Puerto Rico
EUR 1,068
8.0%
3
Colombia
EUR 1,067
8.0%
4
Ecuador
EUR 1,050
9.5%
5
Guatemala
EUR 1,049
9.6%
6
Costa Rica
EUR 1,038
10.5%
7
Panama
EUR 1,032
11.0%
8
Peru
EUR 1,015
12.5%
9
Argentina
EUR 963
17.0%
10
Chile
EUR 956
17.6%
11
Uruguay
EUR 950
18.1%
12
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NOTE* Withholding is calculated based on the tables of Luxembourg, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.