Taxes in Luxembourg
Get back what you paid ahead, deduct what can be deducted, pay what's fair. Choose your situation, we'll take you to the right page.
In Luxembourg, your employer withholds your tax every month, based on your tax card (the ACD document stating your tax class to your employer). This withholding is an advance: if your situation changed during the year (arrival, new salary, second employer), you probably overpaid, and the annual adjustment (the simple adjustment of tax withheld from your salary, model 163) gets you a refund. Depending on your situation, you will use this annual adjustment or a tax return: our guide tax return or annual adjustment helps you choose. If you are a cross-border worker, tax assimilation can give you access to the same deductions as a resident.
Rules in force in 2026, for declaring your 2025 income, to be submitted by 31 December 2026 at the latest.
Key figures to remember
- 31 December 2026
- last day to declare your 2025 income or apply for your annual adjustmentmodel 100 or model 163
- €4,500
- private pension plan deduction per taxpayer, starting with 2026 income (€3,200 for 2025)art. 111bis LIR
- €1,344
- home savings scheme deduction per household member if the youngest subscriber is aged 18 to 40 (€672 otherwise)art. 111 LIR
- 90%
- of your worldwide income taxable in Luxembourg: the threshold to be taxed as a resident when you are a cross-border workerart. 157ter LIR
Which situation sounds most like you?
You may have overpaid
Arrived mid-year, variable salary, multiple employers in a row.
See if it's worth it
Tax return or annual adjustment?
Tax return (model 100) or simple annual adjustment (model 163): what applies to you.
Find out where you stand
Pay less, legally
Home savings scheme, private pension plan, commuting costs, insurance, donations.
See deductions
Check your tax withholding
Your tax card, your tax class, and how to correct them if there is an error.
Understand my tax card
You are a cross-border worker
Tax assimilation, teleworking, what to declare in your home country.
See my situationAll our pages, by topic
4 guides and 12 practical sheets, every rule verified against official sources.
Understand your tax withholding
What is deducted from your salary, and why.
Get back what you paid ahead
Nothing happens automatically: you must request your refund yourself, by 31 December of the following year at the latest.
Pay less, legally
A deduction gets you back its amount multiplied by your marginal tax rate (the rate applied to the highest bracket of your income), not the full amount.
As a couple
Married and resident: you are automatically in tax class 2. Civil partners: you request joint taxation on your tax return.
If you are a cross-border worker
Your salary is taxed in Luxembourg, but by default without resident tax deductions.
Key dates not to miss
Luxembourg taxation revolves around a few key deadlines. Knowing them prevents you from missing out on a refund or a deduction.
The remuneration certificate
Your employer gives it to you at the beginning of the year. It is the basic document for any process regarding the past year.
The tax return (model 100)
For your 2025 income, it must be submitted by 31 December 2026 at the latest.
The annual adjustment (model 163)
For your 2025 income, it must also be requested by 31 December 2026 at the latest.
Your deductible payments
Private pension plan, home savings scheme, and insurance count for the year in which you pay them. For 2026, pay them by 31 December 2026 at the latest.
The guides
Understand everything, jargon-free
taxx.lu: how to file your tax return online in Luxembourgtaxx.lu is the best-known platform to file your tax return online in Luxembourg. Here's how it works, what it costs and whether it's for you.
Tax deductions in Luxembourg: how the money actually gets back into your pocketDeduction or refund? We explain how tax deductions in Luxembourg end up as real euros in your account. Zero jargon.How we inform you, and our limits
Every rule and amount on these pages is verified against official Luxembourg sources: the Administration des contributions directes (ouvre dans un nouvel onglet), Guichet.lu (ouvre dans un nouvel onglet), and legal texts on Legilux (ouvre dans un nouvel onglet). When a rule depends on the year, we tell you which one. When a proposal is just a bill, we present it as such.
An honest limit: what we provide here are guidelines and estimates, not personalized tax advice. For any decision involving money, the advice of a professional remains invaluable. Our simulators give a general idea to see if a process is worth it; they do not replace the tax administration's calculation.
