Tax credits 2026: how much you get and how
Skimming?
We've prepared the shortcut for you.
This is for you if
- You are an employee and wonder what "CIS oui" means on your tax withholding card.
- You are raising a child alone (tax class 1a).
- You earn around the minimum social wage (SSM).
- French, Belgian, or German cross-border worker: the CIS, CI-CO2, and CISSM apply to you if your salary is taxed in Luxembourg; the CIM only applies if you are treated as a resident for tax purposes.
Not for you if you are self-employed or retired and looking for the CIS: you fall under the self-employed tax credit (CII) or pensioner tax credit (CIP), which cannot be combined with the CIS (ACD). The CIM, however, may still apply to you.
Key figures to remember
| Credit | Amount | Condition | Years |
|---|---|---|---|
| CIS | €300 + 2.9% of gross above €936 | annual gross salary from €936 to €11,265 | 2025 and 2026 |
| CIS | €600 per year | €11,266 to €40,000 gross | 2025 and 2026 |
| CIS | €600 - 1.5% of gross above €40,000 | €40,001 to €79,999 gross | 2025 and 2026 |
| CI-CO2 | €216 per year (€192 in 2025) | €936 to €40,000 gross | 2026 |
| CI-CO2 | €216 - 0.54% of gross above €40,000 | €40,001 to €79,999 gross | 2026 |
| CIS and CI-CO2 | €0 | from €80,000 gross per year | 2025 and 2026 |
| CIM | €3,504 per year | adjusted taxable income (what remains after deductions and allowances) under €60,000 | 2025 and 2026 |
| CIM | €3,504 - 6.12% of income above €60,000 | €60,000 to €105,000 | 2025 and 2026 |
| CIM | €750 per year | above €105,000 | 2025 and 2026 |
| CISSM | €81 per month | €1,800 to €3,000 gross per month | 2025 and 2026 |
| CISSM | 81 / 600 × (3,600 - gross salary) per month | €3,000 to €3,600 gross per month | 2025 and 2026 |
Sources: ACD (CIS and CI-CO2 2026 (ouvre dans un nouvel onglet), CIM (ouvre dans un nouvel onglet), CISSM calculation examples (ouvre dans un nouvel onglet)).
How much CIS and CI-CO2 based on your salary?
2026 annual amounts, calculated using the ACD formulas based on annual gross salary:
| Annual gross salary | CIS | CI-CO2 | Total per year |
|---|---|---|---|
| €10,000 | €562.86 | €216 | €778.86 |
| €30,000 | €600 | €216 | €816 |
| €50,000 | €450 | €162 | €612 |
| €60,000 | €300 | €108 | €408 |
| €70,000 | €150 | €54 | €204 |
| €80,000 and above | €0 | €0 | €0 |
The CIS and CI-CO2 only count once across all your salaries, even if you have two employers, and only for the period you are employed. Each employed spouse is entitled to their own.
The CIM, on the other hand, depends on adjusted taxable income, not gross salary. It is reduced by 50% of any child maintenance payments received that exceed €2,712 per year (€226 per month); family allowances are not included in this calculation. It is not granted if both parents live with the child (ACD).
The CISSM is calculated each month. For part-time workers, it starts from a full-time salary, then reduces the credit proportionally based on paid hours. Non-periodic bonuses are ignored up to €3,000 per year (ACD).
Getting your tax credits step by step
Check the CIS box on your tax withholding card
Your tax withholding card indicates CIS, CIP, and CIM: yes or no. That's the first box we look at at trigger. With "CIS oui", your employer deducts the CIS and CI-CO2 from your withholding tax each month. If the tax withheld is smaller than the credit, they pay you the difference (ACD).
Low income: the CISSM is automatic
With a tax withholding card, your employer calculates and pays it every month. Domestic workers employed by an individual: the Joint Social Security Centre (CCSS) pays it. Without a card: the ACD pays it after the year ends, upon request (Guichet.lu).
Single parent: request the CIM
Resident in tax class 1a: have it listed on your card using form 164 R, or claim it after the year ends via an annual adjustment (form 163) or tax return (form 100). Tax-assimilated non-resident: only via a tax return (form 100), by 31 December of the following year at the latest (ACD).
Missing a tax credit? Adjust for the year
Card arrived late, CIS missing: the annual adjustment or tax return catches up on forgotten credits, up until 31 December 2026 for your 2025 income. Which option to choose: check our guide tax return or annual adjustment.
A worked example
Let's take Inès, a resident who is raising her son alone without child maintenance and earns €48,000 gross in 2026. Her card indicates tax class 1a and "CIS oui".
- CIS: 600 - (48,000 - 40,000) × 1.5% = 600 - 120 = €480.
- CI-CO2: 216 - (48,000 - 40,000) × 0.54% = 216 - 43.20 = €172.80.
- CIM: her adjusted taxable income stays under €60,000, so €3,504.
- CISSM: 48,000 / 12 = €4,000 gross per month, above €3,600: €0.
- Total: 480 + 172.80 + 3,504 = €4,156.80 per year, or around €346 per month.
If the CIM is not listed on her card, she only receives the CIS and CI-CO2 on her payslip, around €54 per month: the €3,504 only comes back after the end of the year. At trigger, this is an oversight we often see with single parents.
Another case: Sam works full-time for €2,700 gross per month. His salary is between €1,800 and €3,000: a CISSM of €81 per month. At €3,300, he would get 81 / 600 × (3,600 - 3,300) = €40.50.
Cross-border worker: which tax credits are you entitled to?
- CIS and CI-CO2: yes, if your salary is taxed in Luxembourg and you are affiliated with a social security system (Luxembourg or foreign system covered by an agreement). Same rule for France, Belgium, and Germany.
- CISSM: yes, under the same conditions.
- CIM: only if you request tax assimilation, and strictly via a tax return (form 100).
- Overtime: the overtime tax credit (CIHS), up to €700 per year, applies to certain non-residents. Two cumulative conditions: your country of residence offers no tax advantage for overtime, and the tax treaty with that country eliminates double taxation via a tax credit. It must be claimed after the year ends, via an annual adjustment or tax return. Details on the ACD CIHS page (ouvre dans un nouvel onglet).
Common mistakes
- Thinking the CIS depends on taxable income: it is calculated on gross salary.
- Believing a credit is lost if your tax owed is zero: it is paid out regardless.
- Single parent: failing to list the CIM on your card, effectively fronting €292 per month all year long.
- Cross-border worker: waiting for the CIM to show up on your card, when for an assimilated non-resident it only goes through a tax return.
- Letting 31 December of the following year pass without an annual adjustment or tax return.
What might change
Bill No. 8775, introduced on 22 June 2026, plans to increase the CISSM from €81 to €179 per month as of 1 January 2027, then to €200 as of 1 July 2027, and to grant a temporary economic tax credit (CIC) for the months of June to December 2026. As of 9 October 2026, this bill is still in committee and has not been passed: nothing is guaranteed, and the amounts on this page remain the ones currently in effect.
Frequently asked questions
Yes, if your salary is taxed in Luxembourg and you are affiliated with a Luxembourg or foreign social security system covered by an agreement (ACD, 2026). It goes through your tax withholding card, just like for a resident.
No: the CIS and CI-CO2 only count once across all your salaries (ACD). For couples, each employed spouse gets their own.
The CIS and CI-CO2 are limited to the period during which you are employed, and the CIM to the full months during which you are taxable in Luxembourg (ACD). If they were not correctly applied to your payslip, the annual adjustment catches them up. To estimate what the state might owe you, try the first salary simulator.