Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 72,096
Income Tax
- € 18,963
Health care
- € 2,199
Pension
- € 5,768
Dependency Insurance
- € 912
Total tax
- € 27,842
Net pay
* € 44,254
Marginal tax rate
54.2%
Average tax rate
38.6%
61.4%
Net pay
38.6%
Total tax
Total tax
Net pay
The Taxberg
€ 44,254
Net pay
€ 11,031
Tax the employer pays
€ 27,842
Tax you pay
Total tax paid
€ 38,873
Did you know your employer also pays tax on your salary? It costs the employer € 11,031 to pay you € 72,096. In other words, every time you spend € 10 of your hard-earned money, € 5.39 goes to the government.
Real tax rate
46.8%
So, with you and the employer both paying tax, what used to be a 38.6% tax rate now rises to 46.8%, meaning your real tax rate is actually 8.2% higher than what it seemed at first.
Summary
If you make € 72,096 a year living in Luxembourg, you will be taxed € 27,842. That means that your net pay will be € 44,254 per year, or € 3,688 per month. Your average tax rate is 38.6% and your marginal tax rate is 54.2%. 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 € 54.17, hence, your net pay will only increase by € 45.83.
Bonus Example
A € 1,000 bonus will generate an extra € 458 of net incomes. A € 5,000 bonus will generate an extra € 2,292 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
EUR 53,518
25.8%
1
Canada
EUR 49,858
30.8%
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.