Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 149
Income Tax
- € 20.60
Health care
- € 4.54
Pension
- € 11.92
Dependency Insurance
- € 1.71
Total tax
- € 38.77
Net pay
* € 110
Marginal tax rate
44.9%
Average tax rate
26.0%
74.0%
Net pay
26.0%
Total tax
Total tax
Net pay
The Taxberg
€ 110
Net pay
€ 22.80
Tax the employer pays
€ 38.77
Tax you pay
Total tax paid
€ 61.57
Did you know your employer also pays tax on your salary? It costs the employer € 22.80 to pay you € 149. In other words, every time you spend € 10 of your hard-earned money, € 4.13 goes to the government.
Real tax rate
35.8%
So, with you and the employer both paying tax, what used to be a 26% tax rate now rises to 35.8%, meaning your real tax rate is actually 9.8% higher than what it seemed at first.
Summary
If you make € 38,740 a year living in Luxembourg, you will be taxed € 10,081. That means that your net pay will be € 28,659 per year, or € 2,388 per month. Your average tax rate is 26.0% 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.
Compare average tax
Europe
Country 
Net pay
Average tax
Rank
Russia
EUR 33,704
13.0%
1
Switzerland
EUR 33,408
13.8%
2
Hungary
EUR 31,573
18.5%
3
Ireland
EUR 31,333
19.1%
4
Ukraine
EUR 31,186
19.5%
5
United Kingdom
EUR 30,905
20.2%
6
France
EUR 30,600
21.0%
7
Czech Republic
EUR 29,883
22.9%
8
Norway
EUR 29,519
23.8%
9
Spain
EUR 28,835
25.6%
10
Luxembourg
EUR 28,659
26.0%
11
Austria
EUR 27,594
28.8%
12
Sweden
EUR 27,366
29.4%
13
Greece
EUR 26,193
32.4%
14
Denmark
EUR 26,103
32.6%
15
Germany
EUR 25,372
34.5%
16
Poland
EUR 25,032
35.4%
17
Netherlands
EUR 24,379
37.1%
18
Finland
EUR 23,897
38.3%
19
Italy
EUR 23,886
38.3%
20
Portugal
EUR 22,981
40.7%
21
Romania
EUR 22,663
41.5%
22
Belgium
EUR 19,344
50.1%
23
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North America
Country 
Net pay
Average tax
Rank
USA
EUR 30,898
20.2%
1
Canada
EUR 27,971
27.8%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
EUR 35,337
8.8%
1
Taiwan
EUR 34,081
12.0%
2
Thailand
EUR 32,523
16.1%
3
South Korea
EUR 31,521
18.6%
4
Australia
EUR 31,245
19.4%
5
Kazakhstan
EUR 31,134
19.6%
6
New Zealand
EUR 30,486
21.3%
7
Singapore
EUR 29,868
22.9%
8
Indonesia
EUR 29,635
23.5%
9
Pakistan
EUR 29,336
24.3%
10
Japan
EUR 29,065
25.0%
11
Malaysia
EUR 28,583
26.2%
12
Philippines
EUR 28,020
27.7%
13
Vietnam
EUR 26,865
30.7%
14
China
EUR 25,564
34.0%
15
India
EUR 24,179
37.6%
16
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Latin America
Country 
Net pay
Average tax
Rank
Guatemala
EUR 35,008
9.6%
1
Puerto Rico
EUR 33,028
14.7%
2
Costa Rica
EUR 32,767
15.4%
3
Ecuador
EUR 31,712
18.1%
4
Chile
EUR 31,690
18.2%
5
Panama
EUR 30,857
20.4%
6
Colombia
EUR 30,267
21.9%
7
Peru
EUR 29,168
24.7%
8
Mexico
EUR 28,702
25.9%
9
Brazil
EUR 28,614
26.1%
10
Uruguay
EUR 26,943
30.5%
11
Argentina
EUR 25,174
35.0%
12
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Africa
Country 
Net pay
Average tax
Rank
South Africa
EUR 28,514
26.4%
1
Angola
EUR 28,346
26.8%
2
Kenya
EUR 27,594
28.8%
3
Mozambique
EUR 27,258
29.6%
4
Ghana
EUR 26,563
31.4%
5
Nigeria
EUR 26,468
31.7%
6
Ivory Coast
EUR 25,992
32.9%
7
Morocco
EUR 25,598
33.9%
8
Cameroon
EUR 24,744
36.1%
9
Uganda
EUR 24,662
36.3%
10
Senegal
EUR 24,318
37.2%
11
Zambia
EUR 24,099
37.8%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
EUR 36,803
5.0%
1
Qatar
EUR 36,803
5.0%
2
Bahrain
EUR 35,641
8.0%
3
Oman
EUR 35,641
8.0%
4
Saudi Arabia
EUR 34,866
10.0%
5
Kuwait
EUR 34,479
11.0%
6
Israel
EUR 31,011
20.0%
7
Egypt
EUR 29,314
24.3%
8
Lebanon
EUR 29,233
24.5%
9
Turkey
EUR 22,742
41.3%
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.