Luxembourg tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Luxembourg tax profile.
Tier 2 — every figure has an accepted source; some rest on a PwC / Deloitte / KPMG / EY summary (marked †). Sources last checked 10 November 2026. Figures last changed 10 November 2026. Profile last reviewed 29 April 2026.
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| Salary | Long-term gains | Short-term gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|---|
| Luxembourg | 47.18%† | 0%† | 45.78%† | 45.78%† | 20%† | 45.78%† | 0% |
† This figure rests on a PwC tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in Luxembourg?
The top rate on a salary is 47.18%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 42% above EUR 234,870.
How are capital gains taxed in Luxembourg?
Luxembourg does not tax a capital gain on shares held as an investment in our model. A gain on an asset held for 6 months or less is taxed at up to 45.78%.
How are dividends and interest taxed in Luxembourg?
The top rate is 45.78% on dividends and 20% on interest. Rental income is taxed at up to 45.78%.
How is crypto taxed in Luxembourg?
Luxembourg taxes a gain on crypto assets as a capital gain, and our model computes 0% tax on it.
Does Luxembourg tax foreign income?
Yes. Luxembourg taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does Luxembourg have a wealth tax?
No. Luxembourg has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Luxembourg have an exit tax for individuals?
No. In our model Luxembourg does not tax an individual's unrealised gains when the individual moves abroad.
What special tax regimes does Luxembourg have?
Our profiles list one regime: Impatriate Regime (Article 50ter LIR - 2025 reform) (up to 9 years) — information only; not numerically modelled. It has its own conditions.
When do you become tax resident in Luxembourg?
The Luxembourg day test (tax domicile or habitual abode, including a stay longer than six months): more than six calendar months of stay, retroactive; a kept dwelling can qualify sooner. Available dwelling, short absences and treaty tie-breakers need facts beyond a travel log. The statutory period is six calendar months, not 183 or 185 days.
Residence decides whether Luxembourg taxes you on these rates. See the Luxembourg day-count test and count your own days.
Sources
The Luxembourg profile cites 5 sources for these rules, 2 of them from a government or a statute.
- Circulaire du directeur des contributions L.I.R. n° 14/5 - 99/3 - 99bis/3 du 26 juillet 2018 - Monnaies virtuelles · official, retrieved 2026-11-10
- Fonds pour emploi · official, retrieved 2026-11-03
- PwC WWTS - Luxembourg Individual Personal Income · summary, retrieved 2026-11-10
- PwC WWTS - Luxembourg Other Taxes · summary, retrieved 2026-11-10
- PwC WWTS - Luxembourg Income Determination · summary, retrieved 2026-11-10
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Luxembourg with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Luxembourg side by side with other countries, see every country or try the live demo.
Other countries in Western Europe: Monaco, Malta, Netherlands, Norway, Portugal, Sweden.