Income tax calculator Luxembourg
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 38,480
Income Tax
- € 5,271
Health care
- € 1,174
Pension
- € 3,078
Dependency Insurance
- € 442
Total tax
- € 9,964
Net pay
*
€ 28,516
Marginal tax rate
44.8%
Average tax rate
25.9%
74.1%
Net pay
25.9%
Total tax
Total tax
Net pay
The Taxberg
€ 28,516
Net pay
€ 5,887
Tax the employer pays
€ 9,964
Tax you pay
Total tax paid
€ 15,852
Did you know your employer also pays tax on your salary? It costs the employer € 5,887 to pay you € 38,480. In other words, every time you spend € 10 of your hard-earned money, € 4.12 goes to the government.
Real tax rate
35.7%
So, with you and the employer both paying tax, what used to be a 25.9% tax rate now rises to 35.7%, meaning your real tax rate is actually 9.8% higher than what it seemed at first.
Summary
If you make € 38,480 a year living in Luxembourg, you will be taxed € 9,964. That means that your net pay will be € 28,516 per year, or € 2,376 per month. Your average tax rate is 25.9% and your marginal tax rate is 44.9%. 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 € 44.85, hence, your net pay will only increase by € 55.15.
Bonus Example
A € 1,000 bonus will generate an extra € 552 of net incomes. A € 5,000 bonus will generate an extra € 2,758 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.