Personal income tax rates
What a founder pays on salary or self-employment income follows a progressive scale and a tax class based on household situation. The two numbers that anchor every calculation:
Salary CalculatorGross to net for 2026, with the employer cost on top.Last verified 23 July 2026
Official sources only, linked per figure
The scale
Top marginal rate
42%
guichet.public.lu - income tax return for natural persons, maximum marginal rate · verified 23 July 2026
Employment fund contribution
levied on the tax amount
7%
guichet.public.lu - income tax, 7% contribution to the employment fund · verified 23 July 2026
Tax classes
class 1 single · 1a single with children or 65+ · 2 married/partnered taxed jointly
1, 1a and 2
guichet.public.lu - tax card (fiche de retenue d'impôt) pages · verified 23 July 2026
The scale is progressive, so the 42% marginal rate only touches the top slice of income; effective rates sit well below it. Tax class matters as much as the scale: the same salary is taxed very differently in class 1 and class 2.
Founders who pay themselves a salary from their own company are wage earners for tax purposes: the company withholds at source using the tax card. The official guichet.lu calculator simulates the exact amount for any salary and class.
Go deeper
Common questions
What is the tax rate in Luxembourg?
For individuals, a progressive scale rising to a 42% top marginal rate, plus a 7% employment-fund contribution on the tax due — what you actually pay depends on your tax class. Companies are taxed separately, at 23.87% combined in Luxembourg City.
What is the top income tax rate in Luxembourg?
The maximum marginal rate is 42%, increased by a 7% contribution to the employment fund calculated on the tax due.
What are Luxembourg tax classes?
Class 1 for single taxpayers, class 1a for single taxpayers with children or aged 65+, and class 2 for married couples and qualifying partners taxed jointly.
Related in the database
Reference material from official Luxembourg sources, linked per figure. This is document automation support, not legal or tax advice; confirm figures against the linked source for your specific case.