Luxembourg Personal Income Tax Calculator

Calculate your 2025 tax obligation based on current Luxembourg tax law (Loi concernant l'impôt sur le revenu - LIR)

Tax Year 2025 22 Tax Brackets All Tax Classes

Personal Information

Your personal details determine your tax class and applicable deductions.

Tax Class Determination

Luxembourg assigns taxpayers to one of three tax classes. Art. 119-121 LIR

ⓘ Tax Classes

Your class determines your tax scale:

ClassWho
1Single, no dependents
1aSingle parent, widowed 3+ yr, age 65+
2Married/PACS (income splitting)
Read full guide →

★ Class 1a Reform (2025)

Class 1a was significantly improved for 2025. At EUR 30,000 income, you save EUR 1,735 vs Class 1, an 81% reduction.

⚠ Non-Residents

To access Class 2 and deductions, non-residents must qualify for fiscal assimilation: 90%+ income from Luxembourg, or foreign income under EUR 13,000.

Assimilation guide →

Income Details

Enter all sources of income for the 2025 tax year. Luxembourg taxes 8 categories of income. Art. 10 LIR

Employment Income

Gross annual salary before any deductions. Art. 95 LIR

ⓘ Tax Credits Applied Automatically

Based on your salary, these credits are calculated for you:

CreditMax
CIS (employee)EUR 600/yr
CI-CO2EUR 216/yr
CIM (single parent)EUR 3,504/yr
CISSM (min wage)EUR 81/mo

All phase out above EUR 40,000 salary and reach zero at EUR 80,000.

Full credit details →

ⓘ Social Security Deducted First

Health (3.05%), pension (8%), and long-term care (1.4%) are deducted from gross salary before tax. The first two are capped at EUR 161,232/year.

Pension Income

Annual pension or annuity income. Art. 96 LIR

Self-Employment & Business Income

Net profit from commercial, agricultural, or professional activities. Art. 14-60 LIR

Enter net profit after your own CCSS social security contributions. Self-employed SS is handled separately by the CCSS, not through payroll deduction.
Net profit after CCSS contributions.

Investment & Capital Income

Dividends, interest, and other capital income not covered by withholding tax. Art. 97 LIR

First EUR 1,500 exempt (EUR 3,000 for couples). Art. 115-15b LIR

Rental & Other Income

Art. 98-99 LIR

First EUR 5,000 tax-exempt. Cultural, sports, social, non-profit organisations only. Art. 115(14) LIR

★ Dividends: 50% Exempt

Only half of your dividend income is taxable (Art. 115(15a) LIR). Enter the full gross amount. The calculator applies the exemption automatically.

Deductions & Allowances

Enter amounts you wish to claim. Luxembourg allows various deductions that reduce your taxable income.

Employment-Related Deductions (Frais d'obtention)

Minimum lump-sum (FFO): EUR 540/year + travel deduction (separate). Claim actual expenses if higher. Art. 105 LIR

EUR 99 per unit (first 4 units excluded), max 26 units = EUR 2,574

Special Expenses (Dépenses Spéciales)

Minimum lump-sum: EUR 480 (Class 1/1a) or EUR 960 (Class 2). Art. 109-114 LIR

Life, health, accident, liability insurance
Consumer/car loan interest - combined cap with insurance: EUR 672/person
Art. 111bis LIR - max EUR 3,200/year
Bausparvertrag - EUR 1,344/person (under 40) or EUR 672/person (40+)
Deductible if total exceeds EUR 120/year
Enhanced deduction beyond EUR 672 cap. Claimable every 5 years per property. (Circular LIR n°111/1)

ⓘ FFO + Travel Are Separate

The EUR 540 lump-sum (FFO) and travel deduction are added together. You get both. First 4 km are excluded from travel.

★ Actual Professional Expenses

If your real work costs exceed EUR 540, claim actuals. Qualifying items:

  • Work tools (90%+ professional use)
  • Professional training & courses
  • Work-specific clothing & uniforms
  • Professional books & publications
  • Union dues & chamber fees
  • Home office (90%+ exclusive use)
Full details →

⚠ Insurance + Loan = Shared Cap

Insurance premiums and personal loan interest share a combined cap of EUR 672/person. They are not separate allowances.

★ Retirement Savings

Up to EUR 3,200/person (EUR 4,500 from 2026). At 42% marginal rate, that saves you EUR 1,344 in tax. Each spouse can claim separately.

Learn more →

★ SRD Single Premium: Hidden Gem

Outstanding balance insurance paid as a single premium gets an enhanced deduction far beyond the EUR 672 cap. Base: EUR 6,000 + EUR 1,200/child + 8%/year over age 30 (max +160%). Example: age 44, 2 children = EUR 17,808. Claimable every 5 years.

Employer Interest Bonus (Art. 115-22 LIR)

Tax-exempt employer subsidies on loan interest. These reduce your taxable salary.

Exempt: EUR 3,000 (Class 1) / EUR 6,000 (Class 2/1a)
Exempt: EUR 500 (Class 1) / EUR 1,000 (Class 2/1a)

Housing Costs

Mortgage interest on your principal residence. Art. 98bis LIR

Bank commission, notary fees for mortgage deed, file fees. Fully deductible with no cap in the year of loan subscription. (Circular LIR n°105/8-98/1). Does NOT include notary fees for the purchase deed.

ⓘ Mortgage: Post-2023 = No Cap

Properties available after 31/12/2023 have unlimited mortgage interest deduction. Older properties are capped per person in your household.

AvailableCap/person
After 2023No limit
2020 to 2023EUR 4,000
2015 to 2019EUR 3,000
Before 2015EUR 2,000
Housing guide →

ⓘ Employer Interest Bonus

If your employer subsidises your mortgage or loan interest, up to EUR 3,000 (EUR 6,000 for Class 2/1a) is tax-exempt. Also exempt from social security. Art. 115-22 LIR.

Extraordinary Charges

Costs that exceed a normal burden threshold. Art. 127-129 LIR

Children under 14 - part of shared EUR 5,400/year cap
Part of shared EUR 5,400/year cap with childcare
Children you support but who live elsewhere
Max EUR 5,424/child/year (Art. 127bis)
Requires CMSS medical certificate. No normal burden threshold applies. Art. 127 LIR.
Max EUR 24,000/year - recipient must agree to taxation
Affects single-parent credit (CIM). CIM is reduced by 50% of alimony received above EUR 2,712/year. Art. 139c LIR.

⚠ Childcare + Domestic = EUR 5,400 Shared

The EUR 5,400/year forfait is a shared cap across childcare, domestic help, and dependency care combined. You do not get EUR 5,400 for each.

See the trap →

Your 2025 Tax Results

Detailed breakdown of your Luxembourg personal income tax obligation.

Total Tax Due
EUR 0.00
Effective rate: 0%
Gross Income
EUR 0.00
Total Deductions
EUR 0.00
Social Security
EUR 0.00
Tax Credits
EUR 0.00
Net Income (After Tax)
EUR 0.00

Detailed Breakdown

Tax Bracket Breakdown

How your income is distributed across Luxembourg's progressive tax brackets.

Monthly Summary

Applicable Legal References

Key articles of the LIR applied in this calculation.