Tax Rates in Luxembourg (2026): Income Tax, Corporate Tax & VAT
Headline tax rates that matter when you buy, rent out or hold property through a company in Luxembourg, with their history and a comparison with Western Europe.
- Top personal income tax rate
- 42.0%
- 2026
- Corporate income tax rate
- 23.9%
- 2026
- VAT / sales tax (standard rate)
- 17.0%
- 2026
Tax rate history in Luxembourg
Current headline rates
| Indicator | Value | Year | Change | Source |
|---|---|---|---|---|
| Top personal income tax rateHighest statutory marginal rate on personal income | 42.0% | 2026 | ±0.0 pp vs 2024 | PwC Worldwide Tax Summaries |
| Corporate income tax rateHeadline statutory corporate income tax rate | 23.9% | 2026 | -1.1 pp vs 2024 | PwC Worldwide Tax Summaries |
| VAT / sales tax (standard rate)Standard value-added or sales tax rate | 17.0% | 2026 | ±0.0 pp vs 2024 | PwC Worldwide Tax Summaries |
| Year | Top personal income tax rate | Corporate income tax rate | VAT / sales tax (standard rate) |
|---|---|---|---|
| 2026 | 42.0% | 23.9% | 17.0% |
| 2024 | 42.0% | 24.9% | 17.0% |
| 2023 | 42.0% | 24.9% | 17.0% |
| 2022 | 42.0% | 24.9% | 17.0% |
| 2021 | 45.8% | 24.9% | 17.0% |
| 2020 | 45.8% | 24.9% | 17.0% |
| 2019 | 45.8% | 24.9% | 17.0% |
| 2018 | 45.8% | 26.0% | 17.0% |
| 2017 | 48.8% | 27.1% | 17.0% |
| 2016 | 44.0% | 29.2% | 17.0% |
Property-specific taxes (transfer tax or stamp duty, annual property tax, capital gains on sale and withholding on rent paid to non-residents) vary by region and buyer status and are not included in these headline figures — see the Luxembourg buying guide.
Luxembourg vs Western Europe: tax comparison
| Country | Top personal income tax rate | Corporate income tax rate | VAT / sales tax (standard rate) |
|---|---|---|---|
| Luxembourg | 42.0% | 23.9% | 17.0% |
| Austria | 55.0% | 23.0% | 20.0% |
| Belgium | 50.0% | 25.0% | 21.0% |
| France | 45.0% | 25.0% | 20.0% |
| Germany | 45.0% | 30.0% | 19.0% |
| Netherlands | 49.5% | 25.8% | 21.0% |
| Switzerland | 40.0% | 14.6% | 8.1% |
Related
- Properties for sale in Luxembourg
- House prices & rental yields in Luxembourg
- Luxembourg market overview
Current rates: PwC Worldwide Tax Summaries (taxsummaries.pwc.com), as last reviewed by PwC. Earlier years: Trading Economics. Rates are statutory headline rates; surcharges, regional taxes and special regimes may apply.