Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 18,499
Income Tax
- € 731
Health care
- € 564
Pension
- € 1,480
Dependency Insurance
- € 162
Total tax
- € 2,937
Net pay
* € 15,562
Marginal tax rate
24.5%
Average tax rate
15.9%
84.1%
Net pay
15.9%
Total tax
Total tax
Net pay
The Taxberg
€ 15,562
Net pay
€ 2,830
Tax the employer pays
€ 2,937
Tax you pay
Total tax paid
€ 5,768
Did you know your employer also pays tax on your salary? It costs the employer € 2,830 to pay you € 18,499. In other words, every time you spend € 10 of your hard-earned money, € 3.12 goes to the government.
Real tax rate
27.0%
So, with you and the employer both paying tax, what used to be a 15.9% tax rate now rises to 27.0%, meaning your real tax rate is actually 11.1% higher than what it seemed at first.
Summary
If you make € 18,499 a year living in Luxembourg, you will be taxed € 2,937. That means that your net pay will be € 15,562 per year, or € 1,297 per month. Your average tax rate is 15.9% and your marginal tax rate is 24.6%. 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 € 24.55, hence, your net pay will only increase by € 75.45.
Bonus Example
A € 1,000 bonus will generate an extra € 755 of net incomes. A € 5,000 bonus will generate an extra € 3,773 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
EUR 15,846
14.3%
1
Canada
EUR 13,749
25.7%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
EUR 17,542
5.2%
1
Thailand
EUR 16,802
9.2%
2
Taiwan
EUR 16,759
9.4%
3
Australia
EUR 16,744
9.5%
4
South Korea
EUR 15,838
14.4%
5
New Zealand
EUR 15,553
15.9%
6
Pakistan
EUR 15,538
16.0%
7
Indonesia
EUR 15,299
17.3%
8
Malaysia
EUR 15,225
17.7%
9
Japan
EUR 14,831
19.8%
10
Kazakhstan
EUR 14,738
20.3%
11
Singapore
EUR 14,715
20.5%
12
Philippines
EUR 14,520
21.5%
13
Vietnam
EUR 13,865
25.1%
14
China
EUR 13,044
29.5%
15
India
EUR 12,682
31.4%
16
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Latin America
Country 
Net pay
Average tax
Rank
Guatemala
EUR 16,725
9.6%
1
Puerto Rico
EUR 16,587
10.3%
2
Costa Rica
EUR 16,557
10.5%
3
Ecuador
EUR 16,286
12.0%
4
Colombia
EUR 15,973
13.7%
5
Panama
EUR 15,545
16.0%
6
Chile
EUR 14,999
18.9%
7
Mexico
EUR 14,772
20.2%
8
Peru
EUR 14,265
22.9%
9
Brazil
EUR 13,939
24.7%
10
Uruguay
EUR 13,686
26.0%
11
Argentina
EUR 12,018
35.0%
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.