2026 CIC then the 2027 tax scale: what really changes on your payslip

The government wants to pay a temporary tax credit (CIC, crédit d'impôt conjoncture) for the last seven months of 2026, then replace it in January 2027 with an indexed tax scale. At the same time, the minimum wage tax credit (CISSM) more than doubles. Using the LuxSalary simulator engine, we calculated what these three measures change for monthly net pay.

The 2026 CIC: up to €27.13 a month, paid as a lump sum

The employee CIC applies from 1 June to 31 December 2026. It depends on the month's gross salary, not on the tax class. Because the law has not been voted yet, the CIC line still shows zero on payslips. Once the bill is passed, employers will pay the CIC owed since June in a single payment, then the monthly amount until December.

Nothing is paid below €1,125 gross. The maximum, €27.13 a month, applies from €14,916.

• your tax card must carry the CIS entry;
• the CIC is paid only once, even with several employers;
• bonuses and the 13th month do not count towards the month's gross (unless they offset a cut in ordinary pay);
• Luxembourg must have the right to tax the salary, with compulsory social security cover (cross-border workers included).

January 2027: three simultaneous changes

• Tax scale indexed by 2.5%: every income bracket is multiplied by 1.025. Tax falls slightly, and the CIC line disappears.
• CISSM up from €81 to €179 a month (then €200 from 1 July 2027), for gross pay between €1,800 and €3,000, tapering off up to €3,600.
• Minimum wage +3.8%, about €2,876.64 gross for unskilled workers (official amount to be confirmed). The contribution ceiling (5 × minimum wage) rises accordingly.

Our calculation: December 2026 net vs January 2027 net

For the same gross salary, here is the difference in monthly net pay between a December 2026 payslip (with CIC) and a January 2027 payslip (new scale, new CISSM, no CIC):

At the minimum wage, including the 3.8% rise in gross pay, net pay goes from €2,426.61 to €2,599.19 in class 1, i.e. +€172.58 a month (+€178.58 in class 2).

Who gains, who loses?

• €1,800 to €3,000 gross: about +€92 to +€98 a month. The CISSM far outweighs everything else. This is the main news of January for low earners.
• Class 2 between ~€3,600 and ~€6,000: −€5 to −€14 a month. The CIC, identical for every class, was worth more than the tax cut from the new scale (e.g. −€13.83 at €4,600).
• Classes 1 and 1a from €3,600 to €4,600: roughly neutral (−€3 to +€3).
• From about €5,000 in classes 1 and 1a, €8,000 in class 2: a modest gain, up to +€27.17 in class 2 at €10,000. The CIC is capped, while the tax cut from the scale keeps growing.
• Above about €13,900: a small loss, about −€30.67 in class 1 at €15,000. The higher contribution ceiling, linked to the minimum wage, costs more than the scale gives back.

For the full timeline up to 2028, see our article Tax reform 2026-2028.

Method and limits

• Calculated with the LuxSalary simulator engine: full-time private-sector employee, no children or special deductions, 2026 contributions (pension 8.5%, health 3.05%, long-term care 1.4%), CIS and CI-CO2 unchanged.
• 2027 scale: the 2025-2026 tariff brackets multiplied by 1.025, as the bill provides. For class 1a, we assume its specific parameters are indexed in the same way.
• CIC formula: article 154sexdecies of bill 8775. The table amounts follow from it to the cent.
• The Grand-Ducal regulation setting the 2027 withholding scales has not been published yet. We will update this article and the simulator as soon as it is.

Sources

Bill no. 8775, parliamentary file (Chamber of Deputies) · Paperjam, "CIC et barème fiscal : ce qui va changer sur votre salaire" (Thierry Labro, 14/10/2026), whose figures match ours.