Luxembourg methodology (2026)
Model
Resident employee, tax class 1 or 2, tax year 2026, with the two standard allowances applied and no itemised deductions.
Source
The 23 band article 118 scale, the solidarity surcharge and the standard allowances are transcribed from the Chambre des salaries' 2026 edition of its guide for employees, which reproduces the tarif in full. Contribution rates come from the Centre commun de la securite sociale's notice of 16 January 2026, and the contribution ceiling from the CCSS parameters in force from 1 June 2026.
Which scale, and why sources disagree
The tax administration publishes the current tarif as applicable from tax year 2025 and issued no separate 2026 scale, so the 2025 scale continues. That is why two different sets circulate: figures with a zero rate band ending at 11,265 are the pre 2025 scale, while the correct 2026 figures run from a zero band to 13,230 up to 42% above 234,870. There is also a trap inside the scale, because the band width is not constant: the first six boundaries step by 2,205 and from 24,255 the step becomes 2,295. Assuming one step size shifts every band above that point.
What 2026 changed
The employee pension contribution rose from 8.00% to 8.50% on 1 January 2026, taking the combined employee rate to 12.95%. The index tranche of 1 June then lifted the social minimum wage to 2,771.33 a month, which moved both the contribution ceiling and the dependence allowance partway through the year; the figures used here are the ones in force from June.
Contributions do not share one base
Health at 3.05% and pension at 8.50% are capped at five times the social minimum wage, about 166,280 a year. The dependence contribution at 1.40% is uncapped and is charged on income above an allowance of a quarter of the minimum wage, 692.83 a month from June. Treating all three the same way gives the wrong answer at both ends of the income scale.
Scope and limits
Tax class 1a is not modelled. Non resident and cross border rules are out of scope, which matters in Luxembourg because roughly half the workforce commutes from France, Belgium and Germany. The minimum wage credit and the single parent credit are not applied. One modelling assumption is flagged in the source code: the dependence contribution is treated as non deductible, which is the established Luxembourg position but was not stated outright in the documents consulted; if it were deductible, tax would fall by roughly its amount times the marginal rate.
Verification
Twenty three automated tests cover all 23 bands and their continuity, the solidarity thresholds for both classes, the employee credit curve, the split contribution bases and the ceiling behaviour. The employee credit reproduces the official guide's own worked example exactly, and the engine lands within about 21 euros a month of a published competitor figure, a gap that is almost exactly the pension rate rise that competitor had not applied.