Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 992
Income Tax
- € 4.67
Health care
- € 30.26
Pension
- € 79.36
Dependency Insurance
- € 5.79
Total tax
- € 120
Net pay
* € 872
Marginal tax rate
18.7%
Average tax rate
12.1%
87.9%
Net pay
12.1%
Total tax
Total tax
Net pay
The Taxberg
€ 872
Net pay
€ 152
Tax the employer pays
€ 120
Tax you pay
Total tax paid
€ 272
Did you know your employer also pays tax on your salary? It costs the employer € 152 to pay you € 992. In other words, every time you spend € 10 of your hard-earned money, € 2.74 goes to the government.
Real tax rate
23.8%
So, with you and the employer both paying tax, what used to be a 12.1% tax rate now rises to 23.8%, meaning your real tax rate is actually 11.7% higher than what it seemed at first.
Summary
If you make € 11,904 a year living in Luxembourg, you will be taxed € 1,441. That means that your net pay will be € 10,463 per year, or € 872 per month. Your average tax rate is 12.1% and your marginal tax rate is 18.7%. 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 € 18.74, hence, your net pay will only increase by € 81.26.
Bonus Example
A € 1,000 bonus will generate an extra € 813 of net incomes. A € 5,000 bonus will generate an extra € 4,063 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
EUR 10,703
10.1%
1
Canada
EUR 9,062
23.9%
2
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.