France vs Luxembourg
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ซ๐ท France โ Local & Regional Contributions
France's 18 regions and 96 metropolitan departments do not set income tax but levy business taxes (CFE; CVAE abolished 2024). Taxe fonciรจre (property tax) is set by communes and has risen sharply. Taxe d'habitation was abolished for primary residences. Employers pay apprenticeship tax (0.68%) and professional training levies.
๐ฑ๐บ Luxembourg โ 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%โ400% = effective 6โ10.5%), 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.
France vs Luxembourg: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ซ๐ท France has a higher top income tax rate (0โ45% vs 0โ42%). ๐ฑ๐บ Luxembourg is more favourable for high earners.
๐ VAT/Sales Tax: France has a higher consumption tax (5.5โ20% vs 3โ17%).
๐ข Corporate Tax: Corporate rates are similar in both countries (25% vs ~24.94%).
๐ Capital Gains: ๐ซ๐ท France taxes investment gains at a lower rate (30% vs 42%), benefiting investors.