🇱🇺 Luxembourg Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 42.0% effective 45.8%

Corporate tax 17.0%

TVA 17.0% standard rate

Tax residency 183 days 85 tax treaties

Luxembourg tax profile

Data year: 2025

Tax system: Worldwide Solidarity surcharge 7-9% on PIT. Class system: 1 (single), 1a (single parent), 2 (married).
Top PIT rate: 42.0% (eff. 45.8%)
Corporate tax rate: 17.0%
TVA: 17.0%
Capital gains tax: 21.0% Half of gains taxed at progressive rates. Shares held >6 months and <10% participation may be exempt.
Social security (employee): 12.5%
Social security (employer): 12.5%
Social security cap (annual): EUR 162,224
Dividend withholding: 15.0%
Interest withholding: 0.0%
Royalty withholding: 0.0%
Wealth tax: 0.50%
Inheritance tax: 48.0%
Treaty count: 85

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
EUR 0	EUR 11,265	0.0%	--
EUR 11,265	EUR 13,137	8.0%	--
EUR 13,137	EUR 15,009	9.0%	--
EUR 15,009	EUR 16,881	10.0%	--
EUR 16,881	EUR 18,753	11.0%	--
EUR 18,753	EUR 20,625	12.0%	--
EUR 20,625	EUR 22,569	14.0%	--
EUR 22,569	EUR 24,513	16.0%	--
EUR 24,513	EUR 26,457	18.0%	--
EUR 26,457	EUR 28,401	20.0%	--
EUR 28,401	EUR 30,345	22.0%	--
EUR 30,345	EUR 32,289	24.0%	--
EUR 32,289	EUR 34,233	26.0%	--
EUR 34,233	EUR 36,177	28.0%	--
EUR 36,177	EUR 38,121	30.0%	--
EUR 38,121	EUR 40,065	32.0%	--
EUR 40,065	EUR 42,009	34.0%	--
EUR 42,009	EUR 43,953	36.0%	--
EUR 43,953	EUR 45,897	38.0%	--
EUR 45,897	EUR 100,000	39.0%	--
EUR 100,000	EUR 150,000	40.0%	--
EUR 150,000	EUR 200,004	41.0%	--
EUR 200,004	and above	42.0%	--

Participation Exemption

PwC Luxembourg Tax Summary (accessed Mar 23, 2026) PIT, CIT, TVA, social security