Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 960
Health care
- € 29.28
Pension
- € 76.80
Total tax
- € 106
Net pay
* € 854
Marginal tax rate
11.1%
Average tax rate
11.1%
89.0%
Net pay
11.1%
Total tax
Total tax
Net pay
The Taxberg
€ 854
Net pay
€ 147
Tax the employer pays
€ 106
Tax you pay
Total tax paid
€ 253
Did you know your employer also pays tax on your salary? It costs the employer € 147 to pay you € 960. In other words, every time you spend € 10 of your hard-earned money, € 2.64 goes to the government.
Real tax rate
22.9%
So, with you and the employer both paying tax, what used to be a 11.1% tax rate now rises to 22.9%, meaning your real tax rate is actually 11.8% higher than what it seemed at first.
Summary
If you make € 960 a year living in Luxembourg, you will be taxed € 106. That means that your net pay will be € 854 per year, or € 71.16 per month. Your average tax rate is 11.1% and your marginal tax rate is 11.1%. 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 € 11.05, hence, your net pay will only increase by € 88.95.
Bonus Example
A € 1,000 bonus will generate an extra € 890 of net incomes. A € 5,000 bonus will generate an extra € 4,448 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
Canada
EUR 916
4.6%
1
USA
EUR 877
8.7%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Australia
EUR 960
0.0%
1
Singapore
EUR 960
0.0%
2
Hong Kong
EUR 960
0.0%
3
Pakistan
EUR 950
1.1%
4
Thailand
EUR 912
5.0%
5
Philippines
EUR 883
8.0%
6
Indonesia
EUR 878
8.5%
7
Taiwan
EUR 875
8.9%
8
South Korea
EUR 857
10.7%
9
New Zealand
EUR 846
11.9%
10
India
EUR 845
12.0%
11
Malaysia
EUR 842
12.3%
12
China
EUR 833
13.2%
13
Vietnam
EUR 816
15.0%
14
Japan
EUR 780
18.7%
15
Kazakhstan
EUR 760
20.8%
16
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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.