Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 12,513
Income Tax
- € 106
Health care
- € 382
Pension
- € 1,001
Dependency Insurance
- € 78.02
Total tax
- € 1,566
Net pay
* € 10,947
Marginal tax rate
21.0%
Average tax rate
12.5%
87.5%
Net pay
12.5%
Total tax
Total tax
Net pay
The Taxberg
€ 10,947
Net pay
€ 1,914
Tax the employer pays
€ 1,566
Tax you pay
Total tax paid
€ 3,481
Did you know your employer also pays tax on your salary? It costs the employer € 1,914 to pay you € 12,513. In other words, every time you spend € 10 of your hard-earned money, € 2.78 goes to the government.
Real tax rate
24.1%
So, with you and the employer both paying tax, what used to be a 12.5% tax rate now rises to 24.1%, meaning your real tax rate is actually 11.6% higher than what it seemed at first.
Summary
If you make € 12,513 a year living in Luxembourg, you will be taxed € 1,566. That means that your net pay will be € 10,947 per year, or € 912 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.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
EUR 11,208
10.4%
1
Canada
EUR 9,513
24.0%
2
Africa
Country 
Net pay
Average tax
Rank
South Africa
EUR 10,947
12.5%
1
Mozambique
EUR 9,527
23.9%
2
Morocco
EUR 9,500
24.1%
3
Angola
EUR 9,266
26.0%
4
Ivory Coast
EUR 9,253
26.1%
5
Kenya
EUR 9,235
26.2%
6
Ghana
EUR 9,115
27.2%
7
Cameroon
EUR 8,808
29.6%
8
Nigeria
EUR 8,628
31.1%
9
Uganda
EUR 8,410
32.8%
10
Senegal
EUR 8,366
33.1%
11
Zambia
EUR 7,970
36.3%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
EUR 11,887
5.0%
1
Qatar
EUR 11,887
5.0%
2
Bahrain
EUR 11,512
8.0%
3
Oman
EUR 11,512
8.0%
4
Saudi Arabia
EUR 11,262
10.0%
5
Kuwait
EUR 11,137
11.0%
6
Israel
EUR 10,868
13.2%
7
Egypt
EUR 9,644
22.9%
8
Lebanon
EUR 9,562
23.6%
9
Turkey
EUR 6,908
44.8%
10
Show more
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.