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Luxembourg corporate tax calculator
What your company really pays on its profit: the 14% and 16% bands, the employment fund and your commune's municipal business tax. Most founders pay less than the 23.87% headline; this shows exactly how much less.
Official 2026 commune multipliers· Memorial A 553 · parameters sourced below
Tax on profit · Luxembourg (City) · 2026
€20,548.75 / year
effective rate 20.55% · headline 23.87% in Luxembourg City · marginal 21.73%
You pay 3.32 points below the headline rate: the first €175,000 of profit sits in the 14% band and the first €17,500 pays no municipal business tax.
Tax year 2026 parameters, resident capital company. Deductions, loss carry-forwards and group rules are not modelled. Not legal or tax advice.
How the bands work
Straight from art. 174 of the income tax law, as amended for tax year 2025 onwards.
14%
profit up to €175,000
The reduced band. A company with €100,000 of profit pays €14,000 corporate income tax, not €16,000.
€24,500 + 30%
€175,000 to €200,000
The transitional formula on the slice above €175,000. It joins the two bands without a jump: both ends match exactly.
16%
profit above €200,000
The standard rate on the whole profit. With the 7% employment fund it makes 17.12%, before the municipal business tax.
Every parameter, sourced
The only Luxembourg corporate tax calculator running on the current official 2026 commune multipliers, cited to the Memorial.
Common questions
What is the corporate tax rate in Luxembourg in 2026?
The headline combined rate for a company in Luxembourg City is 23.87%: 16% corporate income tax, a 7% employment-fund surcharge on that tax, and 6.75% municipal business tax. Most companies pay an effective rate below the headline, because profit up to EUR 175,000 is taxed at the reduced 14% band and the first EUR 17,500 is free of municipal business tax.
Does the commune change how much tax my company pays?
Yes. The municipal business tax is 3% of profit (after a EUR 17,500 allowance) multiplied by your commune's rate. In 2026 the multipliers run from 225% (a 6.75% tax, in Luxembourg City among others) to 350% (10.5%). Where the registered office sits changes the total burden by up to 3.75 points.
What does a company pay in a loss year?
No corporate income tax and no municipal business tax, but the minimum net wealth tax still applies: EUR 535 for a balance sheet up to EUR 350,000, EUR 1,605 up to EUR 2 million, EUR 4,815 above. Losses carry forward and offset future profits for 17 years.
The rules behind these numbers, verified and sourced: corporate income tax, net wealth tax and dividend withholding, all in the Founders Database. Paying yourself a salary from the profit? The salary calculator takes it from here.