Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 13,290
Income Tax
- € 175
Health care
- € 405
Pension
- € 1,063
Dependency Insurance
- € 88.90
Total tax
- € 1,732
Net pay
* € 11,558
Marginal tax rate
22.0%
Average tax rate
13.0%
87.0%
Net pay
13.0%
Total tax
Total tax
Net pay
The Taxberg
€ 11,558
Net pay
€ 2,033
Tax the employer pays
€ 1,732
Tax you pay
Total tax paid
€ 3,765
Did you know your employer also pays tax on your salary? It costs the employer € 2,033 to pay you € 13,290. In other words, every time you spend € 10 of your hard-earned money, € 2.83 goes to the government.
Real tax rate
24.6%
So, with you and the employer both paying tax, what used to be a 13% tax rate now rises to 24.6%, meaning your real tax rate is actually 11.6% higher than what it seemed at first.
Summary
If you make € 13,290 a year living in Luxembourg, you will be taxed € 1,732. That means that your net pay will be € 11,558 per year, or € 963 per month. Your average tax rate is 13.0% and your marginal tax rate is 22.0%. 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 € 21.95, hence, your net pay will only increase by € 78.05.
Bonus Example
A € 1,000 bonus will generate an extra € 781 of net incomes. A € 5,000 bonus will generate an extra € 3,903 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.