Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 23
Health care
- € 0.70
Pension
- € 1.84
Total tax
- € 2.54
Net pay
* € 20.46
Marginal tax rate
11.1%
Average tax rate
11.1%
88.9%
Net pay
11.1%
Total tax
Total tax
Net pay
The Taxberg
€ 20.46
Net pay
€ 3.52
Tax the employer pays
€ 2.54
Tax you pay
Total tax paid
€ 6.06
Did you know your employer also pays tax on your salary? It costs the employer € 3.52 to pay you € 23. 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 € 1,196 a year living in Luxembourg, you will be taxed € 132. That means that your net pay will be € 1,064 per year, or € 88.65 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 1,124
6.0%
1
USA
EUR 1,092
8.7%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Australia
EUR 1,196
0.0%
1
Singapore
EUR 1,196
0.0%
2
Hong Kong
EUR 1,196
0.0%
3
Pakistan
EUR 1,186
0.9%
4
Thailand
EUR 1,136
5.0%
5
Philippines
EUR 1,108
7.4%
6
Indonesia
EUR 1,095
8.4%
7
Taiwan
EUR 1,090
8.9%
8
South Korea
EUR 1,068
10.7%
9
New Zealand
EUR 1,054
11.9%
10
India
EUR 1,052
12.0%
11
Malaysia
EUR 1,050
12.2%
12
China
EUR 1,038
13.2%
13
Vietnam
EUR 1,017
15.0%
14
Japan
EUR 972
18.7%
15
Kazakhstan
EUR 947
20.8%
16
Show more
Latin America
Country 
Net pay
Average tax
Rank
Mexico
EUR 1,168
2.4%
1
Brazil
EUR 1,106
7.5%
2
Puerto Rico
EUR 1,101
8.0%
3
Colombia
EUR 1,100
8.0%
4
Ecuador
EUR 1,083
9.5%
5
Guatemala
EUR 1,081
9.6%
6
Costa Rica
EUR 1,070
10.5%
7
Panama
EUR 1,064
11.0%
8
Peru
EUR 1,047
12.5%
9
Argentina
EUR 993
17.0%
10
Chile
EUR 986
17.6%
11
Uruguay
EUR 980
18.1%
12
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Africa
Country 
Net pay
Average tax
Rank
South Africa
EUR 1,184
1.0%
1
Zambia
EUR 1,124
6.0%
2
Morocco
EUR 1,115
6.7%
3
Ivory Coast
EUR 1,071
10.4%
4
Uganda
EUR 1,066
10.9%
5
Kenya
EUR 1,045
12.6%
6
Senegal
EUR 1,031
13.8%
7
Cameroon
EUR 1,009
15.6%
8
Mozambique
EUR 1,004
16.1%
9
Ghana
EUR 993
17.0%
10
Angola
EUR 940
21.4%
11
Nigeria
EUR 908
24.0%
12
Show more
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.