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LU Tax 2023

iCalculator™ LU: Luxembourg Tax Calculators

Welcome to iCalculator™ LU, your comprehensive suite of free tax calculators for Luxembourg. iCalculator™ has provided free tax calculators for Luxembourg since 2019. Since those early days we have extended our resources for Luxembourg to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Luxembourg Tax Calculator and salary calculators within our Luxembourg tax section are based on the latest tax rates published by the Tax Administration in Luxembourg. In this dedicated Tax Portal for Luxembourg you can access:

Luxembourg Tax Calculator 2023/24

The Luxembourg Tax Calculator below is for the 2023 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Luxembourg. This includes calculations for

  1. Employees in Luxembourg to calculate their annual salary after tax.
  2. Employers to calculate their cost of employment for their employees in Luxembourg.
Luxembourg Tax Calculator 2023
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Advanced Luxembourg Salary Calculator
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Taxation in Luxembourg: Types and Compliance Overview

Luxembourg, known for its advanced economy and international financial hub status, has a well-structured tax system. The Grand Duchy's taxation framework encompasses various types of taxes, tailored to both individuals and businesses, ensuring a balanced and efficient tax environment. This overview provides insights into the primary tax categories and compliance requirements in Luxembourg, tailored for iCalculator™ LU users.

Personal Income Tax

Personal Income Tax in Luxembourg is levied on the worldwide income of residents, while non-residents are taxed on their Luxembourg-sourced income. The tax system is progressive, with rates increasing as income rises. It includes various income sources such as employment income, business profits, pensions, and rental income. Taxpayers can benefit from various deductions and allowances, which reduce the taxable base.

Corporate Tax

Corporate Tax is imposed on the profits of companies registered in Luxembourg. The tax rate varies depending on the level of taxable income. In addition to the Corporate Income Tax, companies may also be subject to a municipal business tax and a contribution to the unemployment fund, depending on their location and size.

Value Added Tax (VAT)

VAT in Luxembourg is applicable to most goods and services. The country offers one of the lowest standard VAT rates in Europe, with reduced rates for certain categories of goods and services. Businesses must register for VAT if their turnover exceeds a specific threshold and comply with regular VAT reporting and payment obligations.

Property Taxes

Property taxes in Luxembourg include a real estate tax on property ownership and a transfer tax on property sales. These taxes are typically local and depend on the property's location and characteristics.

Inheritance and Gift Taxes

Inheritance and gift taxes are levied on the transfer of assets by way of inheritance or gift. The rate depends on the relationship between the donor and the beneficiary, with closer relatives typically taxed at lower rates.

Tax Compliance and Administration

Tax compliance in Luxembourg is facilitated by a well-organized administration system. Taxpayers must file annual returns, and in some cases, quarterly or monthly declarations. The Luxembourg tax authorities offer online services to ease the filing and payment process. Penalties may apply for late or incorrect filings.