Luxembourg tax classes 1, 1a and 2
Luxembourg applies the same 23 band scale to everyone, but it applies it differently depending on your tax class. For a single earner household the class is worth more than any deduction in the system.
The three classes
| Class | Who |
|---|---|
| 1 | Everyone who is not in class 1a or 2, which in practice means single taxpayers without children |
| 1a | Broadly single parents, widowed taxpayers, and people aged over 64 who do not qualify for class 2 |
| 2 | Married or partnered couples assessed jointly |
Class 2 is full splitting
The mechanism is simple and generous. The class 1 scale is applied to half the household's taxable income, and the resulting tax is doubled. Because the scale is progressive, halving the income before applying it drops you into much lower bands, and doubling a small number still gives a small number.
| Gross salary | Net, class 1 | Net, class 2 | Difference |
|---|---|---|---|
| EUR 50,000 | EUR 38,597 | EUR 42,404 | EUR 3,807 |
| EUR 83,594 | EUR 55,548 | EUR 65,731 | EUR 10,183 |
| EUR 120,000 | EUR 73,802 | EUR 86,861 | EUR 13,059 |
| EUR 180,000 | EUR 103,346 | EUR 117,901 | EUR 14,555 |
These figures assume one earner with the stated salary. Where both partners earn similar amounts the advantage shrinks, because splitting is already approximately what two class 1 assessments would achieve.
The surcharge threshold moves too
The solidarity surcharge is 7% of your tax, rising to 9% at higher incomes. The point at which it rises depends on class: EUR 150,000 of taxable income in classes 1 and 1a, but EUR 300,000 in class 2. That is consistent with splitting, since a class 2 household is two people.
Class 1a is not modelled here
Our calculator supports classes 1 and 2. Class 1a uses a construction that we could not verify from the published sources, so rather than approximate it we leave it out. If you are in class 1a, treat the class 1 figure as an upper bound on your tax.
The Luxembourg salary calculator lets you switch between classes 1 and 2. See also the social contributions guide.