Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 31,596
Income Tax
- € 3,223
Health care
- € 964
Pension
- € 2,528
Dependency Insurance
- € 345
Total tax
- € 7,059
Net pay
* € 24,537
Marginal tax rate
39.5%
Average tax rate
22.3%
77.7%
Net pay
22.3%
Total tax
Total tax
Net pay
The Taxberg
€ 24,537
Net pay
€ 4,834
Tax the employer pays
€ 7,059
Tax you pay
Total tax paid
€ 11,893
Did you know your employer also pays tax on your salary? It costs the employer € 4,834 to pay you € 31,596. In other words, every time you spend € 10 of your hard-earned money, € 3.76 goes to the government.
Real tax rate
32.6%
So, with you and the employer both paying tax, what used to be a 22.3% tax rate now rises to 32.6%, meaning your real tax rate is actually 10.3% higher than what it seemed at first.
Summary
If you make € 31,596 a year living in Luxembourg, you will be taxed € 7,059. That means that your net pay will be € 24,537 per year, or € 2,045 per month. Your average tax rate is 22.3% and your marginal tax rate is 39.5%. 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 € 39.49, hence, your net pay will only increase by € 60.51.
Bonus Example
A € 1,000 bonus will generate an extra € 605 of net incomes. A € 5,000 bonus will generate an extra € 3,026 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
EUR 25,612
18.9%
1
Canada
EUR 23,279
26.3%
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.