Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 1,683
Income Tax
- € 246
Health care
- € 51.33
Pension
- € 135
Dependency Insurance
- € 19.51
Total tax
- € 452
Net pay
* € 1,231
Marginal tax rate
50.5%
Average tax rate
26.8%
73.2%
Net pay
26.8%
Total tax
Total tax
Net pay
Summary
If you make € 40,392 a year living in Luxembourg, you will be taxed € 10,844. That means that your net pay will be € 29,548 per year, or € 2,462 per month. Your average tax rate is 26.9% and your marginal tax rate is 50.5%. 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 € 50.51, hence, your net pay will only increase by € 49.49.
Bonus Example
A € 1,000 bonus will generate an extra € 495 of net incomes. A € 5,000 bonus will generate an extra € 2,475 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.