Luxembourg tax tables 2026
The income tax scale and how tax classes 1, 1a and 2 apply it, the employment fund surcharge, the tax credits (CIS, CI-CO2, CIP, CIM, CISSM), CCSS contributions for employees and employers (health, pension, dependency, accident, mutualité des employeurs) with the minimum base and the ceiling, the index tranche, the social minimum wage and the rules for freelancers and new residents (self-employed contributions, VAT franchise, impatriate regime, residence permit) for 2026.
- 2026-01-01 to 2026-12-31
- EUR
Income tax
Income tax scale 2026 (art. 118 L.I.R.)
| Adjusted taxable income per year (revenu imposable ajusté), tax class 1 | Rate |
|---|---|
| €0 to €13,230 | 0% |
| €13,230 to €15,435 | 8% |
| €15,435 to €17,640 | 9% |
| €17,640 to €19,845 | 10% |
| €19,845 to €22,050 | 11% |
| €22,050 to €24,255 | 12% |
| €24,255 to €26,550 | 14% |
| €26,550 to €28,845 | 16% |
| €28,845 to €31,140 | 18% |
| €31,140 to €33,435 | 20% |
| €33,435 to €35,730 | 22% |
| €35,730 to €38,025 | 24% |
| €38,025 to €40,320 | 26% |
| €40,320 to €42,615 | 28% |
| €42,615 to €44,910 | 30% |
| €44,910 to €47,205 | 32% |
| €47,205 to €49,500 | 34% |
| €49,500 to €51,795 | 36% |
| €51,795 to €54,090 | 38% |
| €54,090 to €117,450 | 39% |
| €117,450 to €176,160 | 40% |
| €176,160 to €234,870 | 41% |
| Over €234,870 | 42% |
23 bands from 0% to 42%, unchanged since the 2025 tax year. Class 1a and class 2 apply the same scale differently (next section); the employment fund surcharge comes on top of the tax.
Source: Administration des contributions directes (ACD): Loi modifiée du 4 décembre 1967 concernant l'impôt sur le revenu, texte coordonné en vigueur au 1er janvier 2026 (date d'actualisation 08/05/2026), art. 118 · retrieved 2026-11-11
Tax classes 1, 1a and 2: how the scale applies
| Item | Value |
|---|---|
| Class 1: who | Single people who are in neither class 1a nor class 2 |
| Class 1: how the scale applies | The scale above applies to the whole adjusted taxable income (art. 120) |
| Class 1a: who | Widowed people, people receiving the child tax reduction (art. 122), and people aged 64 or over at the start of the tax year (unless in class 2) |
| Class 1a: how the scale applies | The scale applies to income reduced by one quarter of the difference between €79,380 and the income (art. 120bis) |
| Class 1a: reference amount for the reduction | €79,380 |
| Class 1a: share of the difference deducted | 25% |
| Class 1a: maximum marginal rate from €51,804 to €117,450 | 39% |
| Class 1a: maximum marginal rate from €117,450 to €176,160 | 40% |
| Class 1a: maximum marginal rate from €176,160 to €234,870 | 41% |
| Class 1a: maximum marginal rate over €234,870 | 42% |
| Class 2: who | Married couples and partners taxed jointly, and for three years people widowed, divorced or separated |
| Class 2: how the scale applies (splitting) | Twice the tax that the scale gives on half of the joint adjusted taxable income (art. 121) |
| Class 2: splitting factor | 2 |
Class 1a in art. 120bis caps the marginal rate from €51,804 (as printed in the law; the scale's 38%/39% band boundary is €51,795/€54,090).
Source: ACD: L.I.R., texte coordonné en vigueur au 1er janvier 2026 (date d'actualisation 08/05/2026), art. 119, 120, 120bis and 121 · retrieved 2026-11-11
Contribution to the employment fund (surcharge on income tax)
| Item | Value |
|---|---|
| Surcharge on the income tax, adjusted taxable income up to €150,000 (all classes) | 7% |
| Surcharge on income over €150,000 in classes 1 and 1a | 9% |
| Surcharge on income over €300,000 in class 2 | 9% |
| Higher-rate threshold, classes 1 and 1a | €150,000 |
| Higher-rate threshold, class 2 | €300,000 |
Basis: The income tax computed on the scale
The withholding tables already include the surcharge (ACD).
Source: ACD: A à Z, Fonds pour l'emploi (last updated 13/02/2024) · retrieved 2026-11-11
Tax credits 2026 (CIS, CI-CO2, CIP, CIM, CISSM)
| Item | Value |
|---|---|
| Employee tax credit (CIS): maximum per year | €600 |
| CIS: amount by gross salary | €300 + 2.9% of salary above €936 up to €11,265; €600 from €11,266 to €40,000; then reduced by 1.5% of salary above €40,000 |
| CIS: no credit from gross salary per year of | €80,000 |
| CO2 tax credit (CI-CO2) for employees, pensioners and the self-employed, per yearRaised from €192 for 2026Source: data.legilux.public.lu · retrieved 2026-11-11 | €216 |
| CI-CO2: phase-outSource: data.legilux.public.lu · retrieved 2026-11-11 | Reduced by 0.54% of gross income above €40,000; nil from €80,000 |
| Pensioner tax credit (CIP) and self-employed tax credit (CII) | Same amounts as the CIS (maximum €600, nil from €80,000); the three credits cannot be combined |
| Single-parent tax credit (CIM): adjusted taxable income below €60,000 | €3,504 |
| CIM: phase-out | €3,504 minus 6.12% of income above €60,000, down to €750 over €105,000 |
| CIM: minimum amount (income over €105,000) | €750 |
| CIM: reduced by this share of the allowances the child receives above €2,712 a year | 50% |
| Minimum-wage tax credit (CISSM), per month, gross monthly salary €1,800 to €3,000 | €81 |
| CISSM: phase-out | €81 × (€3,600 − salary) / 600 between €3,000 and €3,600; nil from €3,600 |
Credits are paid through payroll (or the pension fund) and refunded where they exceed the tax. The CIS and CI-CO2 need at least €936 of salary a year.
Source: ACD: L.I.R., texte coordonné en vigueur au 1er janvier 2026 (date d'actualisation 08/05/2026), art. 154quater (CIS), 154quinquies (CIP) and 152ter (CII) · retrieved 2026-11-11
Employee contributions
Social security (CCSS): employee contributions
| Item | Value |
|---|---|
| Health insurance: benefits in kind (soins de santé) | 2.8% |
| Health insurance: cash benefits (prestations en espèces) | 0.25% |
| Pension insurance | 8.5% |
| Total of the three rates above (up to the ceiling) | 11.55% |
| Dependency insurance (assurance dépendance), on all income without ceiling | 1.4% |
Basis: Gross pay between the minimum base and the ceiling (dependency: all pay, after the monthly allowance below)
The pension rate rose from 8% to 8.5% on each side on 1 January 2026 (combined rate 17%, 16% in 2025).
Source: Centre commun de la sécurité sociale (CCSS): Avis aux employeurs, Taux de cotisation au 01.01.2026 pour salariés (16 janvier 2026) · retrieved 2026-11-11
Contribution bases: minimum, ceiling (5× social minimum wage) and the dependency allowance
| Item | Value |
|---|---|
| Minimum base per month (social minimum wage), 1 January 2026 to 31 May 2026Source: ccss.public.lu · retrieved 2026-11-11 | €2,703.74 |
| Ceiling per month (5× social minimum wage), 1 January 2026 to 31 May 2026Source: ccss.public.lu · retrieved 2026-11-11 | €13,518.68 |
| Dependency insurance allowance per month (¼ of the social minimum wage), 1 January 2026 to 31 May 2026Source: ccss.public.lu · retrieved 2026-11-11 | €675.93 |
| Minimum base per month (social minimum wage), from 1 June 2026 | €2,771.33 |
| Ceiling per month (5× social minimum wage), from 1 June 2026 | €13,856.63 |
| Dependency insurance allowance per month (¼ of the social minimum wage), from 1 June 2026 | €692.83 |
The minimum and ceiling do not apply to the dependency contribution; the allowance is prorated when fewer than 150 hours a month are worked for one employer.
Source: Inspection générale de la sécurité sociale (IGSS): Paramètres sociaux valables au 1er juin 2026 · retrieved 2026-11-11
Employer costs
Social security (CCSS): employer contributions
| Item | Value |
|---|---|
| Health insurance: benefits in kind | 2.8% |
| Health insurance: cash benefits | 0.25% |
| Pension insurance | 8.5% |
| Accident insurance: base rate (bonus-malus factor 1.00) | 0.65% |
| Accident insurance with bonus-malus factor 0.85 | 0.5525% |
| Accident insurance with bonus-malus factor 1.10 | 0.715% |
| Accident insurance with bonus-malus factor 1.30 | 0.845% |
| Accident insurance with bonus-malus factor 1.50 | 0.975% |
| Mutualité des employeurs class 1 (financial absenteeism below 0.65%) | 0.23% |
| Mutualité des employeurs class 2 (financial absenteeism below 1.6%) | 0.95% |
| Mutualité des employeurs class 3 (financial absenteeism below 2.5%) | 1.56% |
| Mutualité des employeurs class 4 (financial absenteeism of 2.5% or more) | 2.66% |
| Occupational health service (STM members, private sector) | 0.14% |
| Family benefits (public sector employers only) | 1.7% |
Basis: Gross pay between the minimum base and the ceiling
The Association d'assurance accident sets each employer's bonus-malus factor; the mutualité class follows the employer's financial absenteeism rate.
Source: Centre commun de la sécurité sociale (CCSS): Avis aux employeurs, Taux de cotisation au 01.01.2026 pour salariés (16 janvier 2026) · retrieved 2026-11-11
Social minimum wage 2026
| Item | Value |
|---|---|
| Unskilled, 18 and over: per month, 1 January 2026 to 31 May 2026 | €2,703.74 |
| Unskilled, 18 and over: per hour, 1 January 2026 to 31 May 2026 | €15.6285 |
| Skilled (+20%): per month, 1 January 2026 to 31 May 2026 | €3,244.48 |
| Skilled: per hour, 1 January 2026 to 31 May 2026 | €18.7542 |
| Age 17 to 18 (80%): per month, 1 January 2026 to 31 May 2026 | €2,162.99 |
| Age 15 to 17 (75%): per month, 1 January 2026 to 31 May 2026 | €2,027.80 |
| Unskilled, 18 and over: per month, from 1 June 2026 | €2,771.33 |
| Unskilled, 18 and over: per hour, from 1 June 2026 | €16.0192 |
| Skilled (+20%): per month, from 1 June 2026 | €3,325.59 |
| Skilled: per hour, from 1 June 2026 | €19.2231 |
| Age 17 to 18 (80%): per month, from 1 June 2026 | €2,217.06 |
| Age 15 to 17 (75%): per month, from 1 June 2026 | €2,078.49 |
Basis: Gross pay, full time
Index 968.04 until 31 May 2026 and 992.24 from 1 June 2026. Skilled workers need a recognised vocational certificate or the required years of practice (guichet.lu).
Source: Inspection du travail et des mines (ITM): D4a3 - A combien s'élève la rémunération minimale ? (last updated 05/06/2026), with the ITM 'Archives des salaires minimum sociaux' · retrieved 2026-11-11
Other rates
Wage indexation (index tranches) in 2026
| Item | Value |
|---|---|
| Applicable index (cote d'application) on 1 January 2026 | 968.04 |
| Index tranche on 1 June 2026 | Applicable index rises from 968.04 to 992.24 points |
| Applicable index from 1 June 2026 | 992.24 |
| Increase in wages, pensions, the social minimum wage and contribution bases on 1 June 2026 | 2.5% |
| Social minimum wage at index 100 (monthly) | €279.30 |
Wages and benefits move by 2.5% when the consumer price index has risen 2.5% over the previous semester (STATEC); no tranche fell on 1 January 2026.
Source: Caisse nationale d'assurance pension (CNAP): Application indiciaire au 1er juin 2026 (last modified 29.05.2026) · retrieved 2026-11-11
Freelancers, the self-employed and new residents
| Item | Value |
|---|---|
| Flat-rate or simplified income-tax regime | None: business and professional profits are taxed on the same progressive scale as other income, by tax class |
| Self-employed tax credit (CII), maximum per year (plus the CI-CO2)Source: impotsdirects.public.lu · retrieved 2026-11-11 | €600 |
| Self-employed CCSS: pension insuranceSource: ccss.public.lu · retrieved 2026-11-11 | 17% |
| Self-employed CCSS: health insurance (benefits in kind)Source: ccss.public.lu · retrieved 2026-11-11 | 5.6% |
| Self-employed CCSS: dependency insuranceSource: ccss.public.lu · retrieved 2026-11-11 | 1.4% |
| Self-employed minimum contribution base per month (social minimum wage), from 1 June 2026Source: igss.gouvernement.lu · retrieved 2026-11-11 | €2,771.33 |
| VAT franchise: annual turnover in Luxembourg up to (tolerance to €55,000 in the year it is exceeded)Source: pfi.public.lu · retrieved 2026-11-11 | €50,000 |
| Inbound regime (impatriés)Source: impotsdirects.public.lu · retrieved 2026-11-11 | 50% of the pay of recruited or seconded employees is exempt (pay up to €400,000), for at most 8 tax years after the year of arrival; fixed salary at least €75,000; details below |
| Residence permit for the self-employed (third-country nationals)Source: guichet.public.lu · retrieved 2026-11-11 | Long-stay visa D for a "travailleur indépendant" residence permit, valid 6 months, applied for before entry; needs adequate resources, an economic or social interest for Luxembourg and, where required, a business permit opinion from the Ministry of the Economy |
| Digital-nomad or freelance visaSource: guichet.public.lu · retrieved 2026-11-11 | None: no remote-work or digital-nomad residence category; freelancers apply as self-employed workers (travailleur indépendant) |
| Application authoritySource: guichet.public.lu · retrieved 2026-11-11 | Luxembourg (or Belgian) embassy or consulate for the visa D; Direction générale de l'immigration (DGIM, Ministry of Home Affairs) for the residence permit; tax: Administration des contributions directes; social security: CCSS |
The self-employed register with the CCSS and pay the employee and employer shares themselves (rates in the next section).
Source: ACD: Barèmes, 1.3 Explications (last updated 18/04/2025) · retrieved 2026-11-11
Self-employed social security 2026 (CCSS, non-salariés)
| Item | Value |
|---|---|
| Health insurance: benefits in kind | 5.6% |
| Health insurance: cash benefits surcharge | 0.5% |
| Pension insurance | 17% |
| Dependency insurance (no minimum or ceiling) | 1.4% |
| Accident insurance: base rate (bonus-malus factor 1.0) | 0.65% |
| Minimum contribution base per month, 1 January to 31 May 2026 | €2,703.74 |
| Minimum base for a secondary activity (⅓ of the social minimum wage), per month, as of 1 January 2026 | €901.25 |
| Maximum contribution base per month (5× social minimum wage), 1 January to 31 May 2026 | €13,518.68 |
| Minimum contribution base per month, from 1 June 2026Source: igss.gouvernement.lu · retrieved 2026-11-11 | €2,771.33 |
| Maximum contribution base per month, from 1 June 2026Source: igss.gouvernement.lu · retrieved 2026-11-11 | €13,856.63 |
| Helping spouse: maximum income (2× social minimum wage), per month, as of 1 January 2026 | €5,407.47 |
Basis: Professional income per month between the minimum and maximum base
Self-employed people can opt into the Mutualité des employeurs (CCSS lists the same class rates). From 1 June 2026 the minimum and maximum bases follow the index tranche (IGSS: all schemes).
Source: CCSS: Avis aux non-salariés, Taux de cotisation au 01.01.2026 (13 mars 2026) · retrieved 2026-11-11
Inbound-employee regime (impatriés, art. 115 n° 13b L.I.R.)
| Item | Value |
|---|---|
| Exempt share of total annual pay | 50% |
| Pay to which the exemption applies: at most, per year | €400,000 |
| Minimum fixed annual salary | €75,000 |
| Maximum duration (tax years after the year of arrival) | 8 |
| No Luxembourg tax residence, no residence within 150 km of the border and no Luxembourg employment income in the previous (years) | 5 |
| Minimum share of working time in the qualifying job | 75% |
| Impatriates at most this share of the employer's workforce (not for firms under 10 years old) | 30% |
| Who qualifies | Employees recruited abroad by a Luxembourg (or EEA) employer, or seconded within an international group (5 years in the group or sector), with deep specialisation; not temporary-agency workers |
| Application | The employer sends the ACD a list of the employees concerned by 31 January each year |
Benefits in kind and other exempt allowances are excluded from the 50% exemption; the regime ends when a condition is no longer met.
Source: ACD: L.I.R., texte coordonné en vigueur au 1er janvier 2026 (date d'actualisation 08/05/2026), art. 115, numéro 13b (impatriés) · retrieved 2026-11-11
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Official sources
- ACD: Loi modifiée du 4 décembre 1967 concernant l'impôt sur le revenu, texte coordonné en vigueur au 1er janvier 2026 · retrieved 2026-11-11
- ACD: Barèmes (personnes physiques) · retrieved 2026-11-11
- ACD: Fonds pour l'emploi · retrieved 2026-11-11
- Mémorial A N° 591 du 19 décembre 2025: loi concernant le budget de l'État pour l'exercice 2026 · retrieved 2026-11-11
- CCSS: Avis aux employeurs, taux de cotisation au 01.01.2026 pour salariés · retrieved 2026-11-11
- CCSS: Paramètres sociaux · retrieved 2026-11-11
- IGSS: Paramètres sociaux valables au 1er juin 2026 · retrieved 2026-11-11
- CNAP: Application indiciaire au 1er juin 2026 · retrieved 2026-11-11
- ITM: A combien s'élève la rémunération minimale ? · retrieved 2026-11-11
- ITM: Archives des salaires minimum sociaux · retrieved 2026-11-11
- CCSS: Avis aux non-salariés, taux de cotisation au 01.01.2026 · retrieved 2026-11-11
- AED: Le nouveau régime de franchise des petites entreprises - FAQ · retrieved 2026-11-11
- Guichet.lu: Visa D pour un titre de séjour "indépendant" · retrieved 2026-11-11
- Guichet.lu: Ressortissant de pays tiers (démarches d'immigration) · retrieved 2026-11-11
How every figure is checked: methodology. All datasets: CalcBloc data.