Luxembourg Income Tax & Net Salary Calculator (2026–2028)Luxembourg Income Tax & Net Salary
Calculator (2026–2028)
Calculate your salary after tax in Luxembourg, compare Tax Class U and Tax Class T, and estimate how the 2028 tax reform may affect your net income.
Calculate your net salary in Luxembourg
Use our Luxembourg salary tax calculator to estimate your income tax, social contributions and net salary after tax for both the current 2026 tax system and the proposed 2028 reform.
The calculator supports:
- Tax Class 1, 1a and 2 (2026 system);
- the new Tax Class U;
- the transitional Tax Class T for married couples;
- salary comparisons between different tax regimes.
You can compare how much tax you may pay:
- as a single employee;
- as a married couple;
- after switching from Tax Class T to Tax Class U;
- or after the 2028 Luxembourg tax reform takes effect.
What you need to know about taxes
What you need to know about taxes in Luxembourg
Taxation in Luxembourg is progressive: the higher your taxable income, the higher the tax rate. Your final net salary depends not only on income tax, but also on social contributions, pension contributions, health insurance and the solidarity surcharge.
With our Luxembourg income tax calculator, you can estimate your salary after tax and compare how much you may pay under the current 2026 tax system and the proposed 2028 tax reform.
All individuals who receive income in Luxembourg may be subject to income tax. This includes salaries, pensions, rental income, royalties and other types of taxable income.
Income tax in Luxembourg is calculated on an annual basis and follows a progressive scale. Before applying the income tax rate, social contributions are deducted from gross income to determine the taxable base.
For 2026, Luxembourg still uses the current tax class system. From 2028, a new unified tax system is expected to apply under Tax Class U, with a transitional Tax Class T for certain married couples.
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In 2026, Luxembourg still has three main tax classes:
Tax Class 1
Tax Class 1a
Tax Class 2
Tax Class 2 may also continue to apply for a limited period after divorce or the death of a spouse.
Your tax class affects how your income tax is calculated. This is why two people with the same gross salary may have different net income after tax.
Luxembourg is preparing a major personal income tax reform from 1 January 2028. The reform is expected to replace the current tax classes with a new unified tax class called Tax Class U.
Under Tax Class U, taxpayers will be taxed individually, regardless of marital status. This means that newly married couples after the reform are expected to be taxed as two individuals rather than under the old married-couple splitting system.
For couples who already benefit from Tax Class 2 before the reform, a transitional regime called Tax Class T is expected to apply. This regime is designed to protect existing married couples from sudden tax increases and may remain available for up to 25 years.
Our calculator allows you to compare:
- current 2026 tax rules;
- the proposed 2028 Tax Class U;
- the transitional Tax Class T;
- how much a married couple may pay if they stay under Tax Class T or switch to individual taxation under Tax Class U.
In addition to income tax, Luxembourg applies a solidarity surcharge.
For 2026, the higher 9% rate applies above EUR 150,000 for Tax Class 1 and 1a, and above EUR 300,000 for Tax Class 2.
For 2028 preview calculations, the calculator applies the same logic to Tax Class U and Tax Class T.
Your net salary in Luxembourg is also affected by social contributions. These usually include:
- pension contribution;
- health insurance;
- dependency contribution.
These contributions are deducted from gross salary before income tax is calculated. Some contributions are limited by an annual ceiling.
Tax treatment may differ for residents and non-residents.
A person is generally considered a Luxembourg tax resident if they live in Luxembourg or stay in the country for more than six months per year.
Residents are usually taxed in Luxembourg on worldwide income.
Non-residents are usually taxed only on Luxembourg-source income.
Tax residency may affect tax filing obligations, available deductions and tax class eligibility.
Enter your gross annual salary, choose the tax year and select the relevant tax class or tax regime.
You can use the calculator to estimate:
- your net salary in Luxembourg;
- your annual income tax;
- your monthly salary after tax;
- the impact of social contributions;
- the difference between the 2026 system and the proposed 2028 reform;
- whether Tax Class U or Tax Class T may be more favourable.
The 2028 calculation is a preview based on the proposed reform and may change once the final rules are confirmed.
