Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
€ 8,748
Health care
- € 267
Pension
- € 700
Dependency Insurance
- € 25.31
Total tax
- € 992
Net pay
* € 7,756
Marginal tax rate
12.4%
Average tax rate
11.3%
88.7%
Net pay
11.3%
Total tax
Total tax
Net pay
The Taxberg
€ 7,756
Net pay
€ 1,338
Tax the employer pays
€ 992
Tax you pay
Total tax paid
€ 2,330
Did you know your employer also pays tax on your salary? It costs the employer € 1,338 to pay you € 8,748. In other words, every time you spend € 10 of your hard-earned money, € 2.66 goes to the government.
Real tax rate
23.1%
So, with you and the employer both paying tax, what used to be a 11.3% tax rate now rises to 23.1%, meaning your real tax rate is actually 11.8% higher than what it seemed at first.
Summary
If you make € 8,748 a year living in Luxembourg, you will be taxed € 992. That means that your net pay will be € 7,756 per year, or € 646 per month. Your average tax rate is 11.3% and your marginal tax rate is 12.5%. 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 € 12.45, hence, your net pay will only increase by € 87.55.
Bonus Example
A € 1,000 bonus will generate an extra € 876 of net incomes. A € 5,000 bonus will generate an extra € 4,378 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
EUR 7,933
9.3%
1
Canada
EUR 6,723
23.2%
2
Africa
Country 
Net pay
Average tax
Rank
South Africa
EUR 7,942
9.2%
1
Morocco
EUR 7,071
19.2%
2
Mozambique
EUR 6,816
22.1%
3
Ivory Coast
EUR 6,691
23.5%
4
Cameroon
EUR 6,613
24.4%
5
Kenya
EUR 6,603
24.5%
6
Angola
EUR 6,518
25.5%
7
Ghana
EUR 6,447
26.3%
8
Nigeria
EUR 6,067
30.7%
9
Uganda
EUR 5,962
31.8%
10
Senegal
EUR 5,934
32.2%
11
Zambia
EUR 5,724
34.6%
12
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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.