Luxembourg Tax Tables - Tax Rates and Thresholds in Luxembourg

Welcome to the iCalculator™ LU Luxembourg Tax Tables page. Understanding the tax system is essential for individuals and businesses residing or operating in Luxembourg. On this page, you will find links to current and historical tax tables for Luxembourg, which provide detailed information on different tax rates and how they may affect you. Review the latest income tax rates, thresholds and personal allowances in Luxembourg which are used to calculate salary after tax when factoring in social security contributions, pension contributions and other salary taxes in Luxembourg

Choose a specific income tax year to see the Luxembourg income tax rates and personal allowances used in the associated income tax calculator for the same tax year.

Definition and Purpose of Tax Tables in Luxembourg

Tax tables in Luxembourg, also known as Luxembourg Tax Slabs or Luxembourg personal allowances and tax thresholds, are a comprehensive list of tax rates, fixed amounts, and thresholds used in the computation of tax. They are a crucial part of the tax system, helping to determine the amount of tax payable by individuals and businesses based on their income or profits.

These tables are regularly updated to reflect changes in tax policy. They include specific notes and guidance on the validity of scenarios, such as qualifying criteria for specific tax relief or allowances, and details on the calculation of phase-outs of specific tax elements within each taxation group (e.g., dividends and corporation tax thresholds). The Luxembourg Tax Tables are an essential tool used in various tax calculations and scenarios.

Users and Applications of Tax Tables in Luxembourg

The primary users of tax tables in Luxembourg include:

1. Individual Taxpayers: To determine their personal income tax liability based on their income level and personal situation (e.g., family status).
2. Employers: For calculating the amount of tax to withhold from employees' salaries.
3. Tax Professionals: Advisors and accountants use these tables to provide accurate tax consultation and compliance services to their clients.
4. Government Agencies: For policy making, tax collection, and ensuring compliance with the tax laws.

These tax tables are used in various scenarios, such as payroll processing, individual tax return preparation, and financial planning. They enable accurate calculation of taxes owed, ensuring compliance with Luxembourg's tax laws.