Tax Classes in Luxembourg: Detailed Guide 2025

The 3 Tax Classes in Luxembourg

Luxembourg's tax system includes three main tax classes, each adapted to a specific family situation.

Class 1: Single and Divorced

Class 1 applies to single, divorced, legally separated, or widowed taxpayers without dependent children.

Personal allowance: €1,350 per year
Progressive tax rate from 0% to 42%
No additional allowances

Class 1a: Singles with Children

This class benefits single parents with at least one dependent child.

Personal allowance: €1,350 per year
Child allowance: €922.50 per child
Child tax credit: €921 per child
Strict exclusive custody conditions

Class 2: Married Couples

Class 2 is reserved for married or civil union couples, offering the most significant tax advantages.

Personal allowance: €2,700 per year (double of class 1)
Tax splitting possible
More advantageous child allowances
Tax optimization possibilities between spouses

Tax Class Changes

Tax class changes must be declared promptly:

Marriage: automatic transition to class 2
Divorce: return to class 1
Birth of a child: possibility of class 1a for single parent

Tax Optimization

For married couples, it's possible to optimize income distribution to minimize overall taxation. Our calculator automatically takes these optimizations into account.

Impact on Family Benefits

Tax class also influences the calculation of family benefits and social aid. Accurate simulation helps anticipate all these elements.