Austria vs Luxembourg
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇦🇹 Austria — Municipal & Church Taxes
Austria's 9 Bundesländer (states) do not set separate income tax rates — this is federal. However, municipalities levy Kommunalsteuer (municipal payroll tax) at 3% on wages paid by employers, and a Dienstgeberabgabe (employer levy). Church tax (Kirchenbeitrag) is compulsory for registered Catholics at ~1% of income. Vienna and other large cities have additional levies. Property tax (Grundsteuer) rates are set by municipalities within federal parameters.
🇱🇺 Luxembourg — Municipal Business & Property Taxes
Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%–400% = effective 6–10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.
Austria vs Luxembourg: Key Tax Differences (2026)
💰 Income Tax: 🇦🇹 Austria has a higher top income tax rate (0–55% vs 0–42%). 🇱🇺 Luxembourg is more favourable for high earners.
🛒 VAT/Sales Tax: Austria has a higher consumption tax (10–20% vs 3–17%).
🏢 Corporate Tax: 🇦🇹 Austria offers a lower corporate rate (21% vs 24.94%), which can influence business location decisions.
📈 Capital Gains: 🇦🇹 Austria taxes investment gains at a lower rate (27.5% vs 42%), benefiting investors.