Luxembourg vs Austria
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.
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.
๐ฆ๐น Austria โ Municipal & Church Taxes
Austria's 9 Bundeslรคnder (states) do not set separate income tax rates โ 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 vs Austria: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฆ๐น Austria has a higher top income tax rate (0โ42% vs 0โ55%). ๐ฑ๐บ Luxembourg is more favourable for high earners.
๐ VAT/Sales Tax: Austria has a higher consumption tax (3โ17% vs 10โ20%).
๐ข Corporate Tax: ๐ฆ๐น Austria offers a lower corporate rate (21% vs 24.94%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐น Austria taxes investment gains at a lower rate (27.5% vs 42%), benefiting investors.