Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 20,376
Income Tax
- € 981
Health care
- € 621
Pension
- € 1,630
Dependency Insurance
- € 188
Total tax
- € 3,421
Net pay
* € 16,955
Marginal tax rate
28.4%
Average tax rate
16.8%
83.2%
Net pay
16.8%
Total tax
Total tax
Net pay
The Taxberg
€ 16,955
Net pay
€ 3,118
Tax the employer pays
€ 3,421
Tax you pay
Total tax paid
€ 6,538
Did you know your employer also pays tax on your salary? It costs the employer € 3,118 to pay you € 20,376. In other words, every time you spend € 10 of your hard-earned money, € 3.21 goes to the government.
Real tax rate
27.8%
So, with you and the employer both paying tax, what used to be a 16.8% tax rate now rises to 27.8%, meaning your real tax rate is actually 11% higher than what it seemed at first.
Summary
If you make € 20,376 a year living in Luxembourg, you will be taxed € 3,421. That means that your net pay will be € 16,955 per year, or € 1,413 per month. Your average tax rate is 16.8% and your marginal tax rate is 28.4%. 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 € 28.39, hence, your net pay will only increase by € 71.61.
Bonus Example
A € 1,000 bonus will generate an extra € 716 of net incomes. A € 5,000 bonus will generate an extra € 3,581 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
EUR 17,265
15.3%
1
Canada
EUR 15,140
25.7%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
EUR 19,289
5.3%
1
Taiwan
EUR 18,384
9.8%
2
Thailand
EUR 18,362
9.9%
3
Australia
EUR 18,226
10.6%
4
South Korea
EUR 17,305
15.1%
5
New Zealand
EUR 17,075
16.2%
6
Pakistan
EUR 16,905
17.0%
7
Indonesia
EUR 16,665
18.2%
8
Malaysia
EUR 16,526
18.9%
9
Japan
EUR 16,274
20.1%
10
Kazakhstan
EUR 16,259
20.2%
11
Singapore
EUR 16,176
20.6%
12
Philippines
EUR 15,787
22.5%
13
Vietnam
EUR 15,125
25.8%
14
China
EUR 14,353
29.6%
15
India
EUR 13,748
32.5%
16
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Africa
Country 
Net pay
Average tax
Rank
South Africa
EUR 16,662
18.2%
1
Mozambique
EUR 15,189
25.5%
2
Angola
EUR 14,986
26.5%
3
Kenya
EUR 14,739
27.7%
4
Morocco
EUR 14,469
29.0%
5
Ivory Coast
EUR 14,429
29.2%
6
Ghana
EUR 14,415
29.3%
7
Nigeria
EUR 13,976
31.4%
8
Cameroon
EUR 13,563
33.4%
9
Uganda
EUR 13,520
33.7%
10
Senegal
EUR 13,275
34.9%
11
Zambia
EUR 12,805
37.2%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
EUR 19,357
5.0%
1
Qatar
EUR 19,357
5.0%
2
Bahrain
EUR 18,746
8.0%
3
Oman
EUR 18,746
8.0%
4
Saudi Arabia
EUR 18,338
10.0%
5
Kuwait
EUR 18,135
11.0%
6
Israel
EUR 17,566
13.8%
7
Egypt
EUR 15,541
23.7%
8
Lebanon
EUR 15,460
24.1%
9
Turkey
EUR 11,862
41.8%
10
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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.