Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 21,504
Income Tax
- € 1,161
Health care
- € 656
Pension
- € 1,720
Dependency Insurance
- € 204
Total tax
- € 3,741
Net pay
* € 17,763
Marginal tax rate
28.4%
Average tax rate
17.4%
82.6%
Net pay
17.4%
Total tax
Total tax
Net pay
The Taxberg
€ 17,763
Net pay
€ 3,290
Tax the employer pays
€ 3,741
Tax you pay
Total tax paid
€ 7,031
Did you know your employer also pays tax on your salary? It costs the employer € 3,290 to pay you € 21,504. In other words, every time you spend € 10 of your hard-earned money, € 3.27 goes to the government.
Real tax rate
28.4%
So, with you and the employer both paying tax, what used to be a 17.4% tax rate now rises to 28.4%, meaning your real tax rate is actually 11% higher than what it seemed at first.
Summary
If you make € 21,504 a year living in Luxembourg, you will be taxed € 3,741. That means that your net pay will be € 17,763 per year, or € 1,480 per month. Your average tax rate is 17.4% 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 18,116
15.8%
1
Canada
EUR 15,976
25.7%
2
Africa
Country 
Net pay
Average tax
Rank
South Africa
EUR 17,444
18.9%
1
Mozambique
EUR 15,997
25.6%
2
Angola
EUR 15,807
26.5%
3
Kenya
EUR 15,529
27.8%
4
Ivory Coast
EUR 15,171
29.5%
5
Ghana
EUR 15,161
29.5%
6
Morocco
EUR 15,153
29.5%
7
Nigeria
EUR 14,744
31.4%
8
Uganda
EUR 14,254
33.7%
9
Cameroon
EUR 14,250
33.7%
10
Senegal
EUR 13,964
35.1%
11
Zambia
EUR 13,499
37.2%
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.