Main Tax Changes 2025
The year 2025 brings several significant changes to Luxembourg taxation, with measures aimed at improving purchasing power and simplifying administrative procedures.
Increased Tax Allowances
Personal Allowance
2024
€1,350
2025
€1,440
+€90 (+6.7%)
Married Couples Allowance
2024
€2,700
2025
€2,880
+€180 (+6.7%)
New Family Measures
Enhanced Child Tax Credit
The child tax credit increases from €921 to €1,000 per child per year, an increase of €79 per child.
Monthly impact per child
+€6.58
New Childcare Bonus
Introduction of a tax credit for childcare expenses for children aged 0 to 12, capped at €2,400 per child per year.
- 50% reimbursement of childcare costs
- Applicable to licensed nurseries, daycare centers and childminders
- Direct deduction from tax owed
Social Contribution Changes
Rate Stability
Good news: social contribution rates remain unchanged in 2025.
Pension
8%
Health
2.8%
Dependency
1.4%
Tax Digitalization
100% Digital Tax Return
From 2025, tax returns become fully digital with:
- Automatic pre-filling of employer data
- Simplified and intuitive interface
- Real-time data validation
- Accelerated file processing
New MyGuichet.lu Portal
Complete portal redesign with improved user experience and integration of new online tax services.
Impact on Your Net Salary
Concrete Savings Examples
Single without children - €4,000 gross/month
Monthly gain: +€7.50 net
Or +€90 per year thanks to increased personal allowance
Married couple, 2 children - €6,000 gross/month
Monthly gain: +€28.17 net
Couple allowance (+€180) + child credit (+€158) = +€338 per year
Single parent, 1 child in care - €3,500 gross/month
Monthly gain: +€207.50 net
Allowance (+€90) + child credit (+€79) + care bonus (+€2,400) = +€2,569 per year
Our Advice
Use our salary calculator updated with all 2025 changes to accurately estimate the impact of these changes on your net compensation. The new rules are already integrated into our calculations!