Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 12,500
Income Tax
- € 105
Health care
- € 381
Pension
- € 1,000
Dependency Insurance
- € 77.84
Total tax
- € 1,564
Net pay
* € 10,936
Marginal tax rate
21.0%
Average tax rate
12.5%
87.5%
Net pay
12.5%
Total tax
Total tax
Net pay
Summary
If you make € 12,500 a year living in Luxembourg, you will be taxed € 1,564. That means that your net pay will be € 10,936 per year, or € 911 per month. Your average tax rate is 12.5% and your marginal tax rate is 21.0%. 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 € 20.95, hence, your net pay will only increase by € 79.05.
Bonus Example
A € 1,000 bonus will generate an extra € 791 of net incomes. A € 5,000 bonus will generate an extra € 3,953 of net incomes.
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.