Luxembourg Tax Tables 2021 - Tax Rates and Thresholds in Luxembourg
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This page contains the tax table information used for the calculation of tax and payroll deductions in Luxembourg in 2021. These tax tables are used for the tax and payroll calculators published on iCalculator™ LU, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Luxembourg or would like to add to or suggest amendments to the information herein then please contact us.
2021 Tax Tables [Quick Links]
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Luxembourg Personal Income Tax Tables in 2021
The Income tax rates and personal allowances in Luxembourg are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Luxembourg Tax Calculator 2021.
Luxembourg Residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)Tax Rate | Taxable Income Threshold |
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0% | Income from € 0.000.00 | to | € 11,265.00 |
8% | Income from € 11,265.01 | to | € 13,173.00 |
9% | Income from € 13,173.01 | to | € 15,009.00 |
10% | Income from € 15,009.01 | to | € 16,881.00 |
11% | Income from € 16,881.01 | to | € 18,753.00 |
12% | Income from € 18,753.01 | to | € 20,625.00 |
14% | Income from € 20,625.01 | to | € 22,569.00 |
16% | Income from € 22,569.01 | to | € 24,513.00 |
18% | Income from € 24,513.01 | to | € 26,457.00 |
20% | Income from € 26,457.01 | to | € 28,401.00 |
22% | Income from € 28,401.01 | to | € 30,345.00 |
24% | Income from € 30,345.01 | to | € 32,289.00 |
26% | Income from € 32,289.01 | to | € 34,233.00 |
28% | Income from € 34,233.01 | to | € 36,177.00 |
30% | Income from € 36,177.01 | to | € 38,121.00 |
32% | Income from € 38,121.01 | to | € 40,065.00 |
34% | Income from € 40,065.01 | to | € 42,009.00 |
36% | Income from € 42,009.01 | to | € 43,953.00 |
38% | Income from € 43,953.01 | to | € 45,897.00 |
39% | Income from € 45,897.01 | to | € 100,002.00 |
40% | Income from € 100,002.01 | to | € 150,000.00 |
41% | Income from € 150,000.01 | to | € 200,004.00 |
42% | Income from € 200,004.01 | | and above |
Luxembourg Non-residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)Tax Rate | Taxable Income Threshold |
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0% | Income from € 0.000.00 | to | € 11,265.00 |
8% | Income from € 11,265.01 | to | € 13,173.00 |
9% | Income from € 13,173.01 | to | € 15,009.00 |
10% | Income from € 15,009.01 | to | € 16,881.00 |
11% | Income from € 16,881.01 | to | € 18,753.00 |
12% | Income from € 18,753.01 | to | € 20,625.00 |
14% | Income from € 20,625.01 | to | € 22,569.00 |
16% | Income from € 22,569.01 | to | € 24,513.00 |
18% | Income from € 24,513.01 | to | € 26,457.00 |
20% | Income from € 26,457.01 | to | € 28,401.00 |
22% | Income from € 28,401.01 | to | € 30,345.00 |
24% | Income from € 30,345.01 | to | € 32,289.00 |
26% | Income from € 32,289.01 | to | € 34,233.00 |
28% | Income from € 34,233.01 | to | € 36,177.00 |
30% | Income from € 36,177.01 | to | € 38,121.00 |
32% | Income from € 38,121.01 | to | € 40,065.00 |
34% | Income from € 40,065.01 | to | € 42,009.00 |
36% | Income from € 42,009.01 | to | € 43,953.00 |
38% | Income from € 43,953.01 | to | € 45,897.00 |
39% | Income from € 45,897.01 | to | € 100,002.00 |
40% | Income from € 100,002.01 | to | € 150,000.00 |
41% | Income from € 150,000.01 | to | € 200,004.00 |
42% | Income from € 200,004.01 | | and above |
Luxembourg Social Security Rates in 2021
In Luxembourg, both employees and employers contribute to a comprehensive social security system. This system ensures coverage for various social needs, ranging from health care to retirement benefits. Here, we'll delve into the different types of social security contributions and their intended purposes, specifically for employees and employers in Luxembourg.
Health Insurance
Health insurance contributions cover a wide range of medical services, including doctor visits, hospitalization, prescriptions, and maternity care. This contribution ensures access to Luxembourg's healthcare system for employees and their families.
Pension Contributions
Pension contributions are earmarked for retirement benefits. They accumulate during an employee's working life, providing financial security in the form of pensions upon reaching retirement age.
Long-term Care Insurance
Long-term care insurance supports individuals who require assistance due to age, illness, or disability. It provides benefits to cover services like home nursing, rehabilitation, and other long-term care needs.
Unemployment Insurance
Unemployment insurance offers financial support to individuals who lose their jobs. It provides temporary income while they seek new employment, contributing to the stability of the labor market.
Family Allowances
Family allowances are designed to support the upbringing of children. This includes child benefits, parental leave payments, and allowances for education and childcare expenses.
Accident Insurance
Accident insurance covers employees in case of work-related injuries or occupational diseases. It provides compensation for medical treatment, rehabilitation, and loss of income due to work-related accidents or illnesses.
Sickness and Maternity Leave
Contributions to sickness and maternity leave funds ensure that employees receive income during periods of illness or maternity/paternity leave. This allows for recovery and childcare without the stress of losing income.
Both employers and employees share the responsibility for these social security contributions. While employers typically pay a larger portion, employees also contribute a percentage of their salary. This collaborative effort ensures a robust and sustainable social welfare system in Luxembourg.
In summary, social security contributions in Luxembourg provide comprehensive coverage for health, retirement, family, and employment-related contingencies. For iCalculator™ LU users, understanding these contributions is essential for both financial planning and compliance with Luxembourg's social security regulations.
Luxembourg Social Security in 2021: Rates for Employers and EmployeesSocial security category | Employee | Employer | Total |
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Sickness Insurance | 2.8% | 0% | 2.8% |
Pension Contributions | 8% | 8% | 16% |
Dependency Contribution | 1.4% | 0% | 1.4% |
Sickness Care and Illness Cash | 0% | 3.05% | 3.05% |
Accident at Work | 0% | 1% | 1% |
Health at Work | 0% | 0.14% | 0.14% |
Employer Mutuality | 0% | 1.5% | 1.5% |
Luxembourg Social Security in 2021: Earnings Thresholds for Employers and EmployeesSocial security category | Employee | Employer |
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Min. | Max. | Min. | Max. |
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Sickness Insurance | n/a | € 149,278.28 | n/a | n/a |
Pension Contributions | n/a | € 149,278.28 | n/a | n/a |
Dependency Contribution | n/a | n/a | n/a | n/a |
Sickness Care and Illness Cash | n/a | n/a | n/a | n/a |
Accident at Work | n/a | n/a | n/a | n/a |
Health at Work | n/a | n/a | n/a | n/a |
Employer Mutuality | n/a | n/a | n/a | n/a |
Luxembourg VAT Rates in 2021
VAT rates for Luxembourg are reviewed annually, you can use the VAT Calculator to calculate VAT due in Luxembourg or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Luxembourg VAT RatesVAT Rate | VAT Description |
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0% | Zero Rated |
3% | Reduced Rate |
8% | Reduced Rate |
14% | Reduced Rate |
17% | Standard Rate |
Historic Tax Tables supported for Luxembourg
The following tax tables are supported by iCalculator™ LU as part of the suite of free tax tools we provide for Luxembourg.