WorldTax Compareโ† All Comparisons

Luxembourg vs Brazil
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg
vs
๐Ÿ‡ง๐Ÿ‡ท Brazil
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“42%
Tax reform package continuing; thresholds indexed
No change
0โ€“27.5%
Zero-rate up to R$5,000/mo fully effective
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
3โ€“17%
Standard 17% maintained
No change
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
โ–ผ -0.5pp vs 2025
Corporate Tax Rate
Corporate Tax Rate
~24.94%
Global minimum tax fully embedded in domestic law
No change
34%
34% maintained; reform discussions ongoing
No change
Capital Gains Tax
Capital Gains Tax
0โ€“42%
No major reform
No change
15โ€“22.5%
Offshore income now fully captured
No change
Social Security & Payroll
Social Security / Payroll
~27%
Pension reform discussions; contribution structure stable
No change
~36%
Payroll simplification proposals ongoing
No change
State, Regional & Local Taxes

๐Ÿ‡ฑ๐Ÿ‡บ 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%โ€“400% = effective 6โ€“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.

๐Ÿ‡ง๐Ÿ‡ท Brazil โ€” State & Municipal Taxes

Brazil has one of the world's most complex tax systems. States levy ICMS at 7%โ€“18% varying by state. Municipalities levy ISS (services tax) at 2%โ€“5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Luxembourg vs Brazil: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg has a higher top income tax rate (0โ€“42% vs 0โ€“27.5%). ๐Ÿ‡ง๐Ÿ‡ท Brazil is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Brazil has a higher consumption tax (3โ€“17% vs ~27.5% combined).

๐Ÿข Corporate Tax: ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg offers a lower corporate rate (24.94% vs 34%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ง๐Ÿ‡ท Brazil taxes investment gains at a lower rate (22.5% vs 42%), benefiting investors.

Related Comparisons

๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ง๐Ÿ‡ช BelgiumTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡จ๐Ÿ‡ฆ CanadaTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ซ๐Ÿ‡ท FranceTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ฉ๐Ÿ‡ช GermanyTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ฎ๐Ÿ‡ช IrelandTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ณ๐Ÿ‡ฑ NetherlandsTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡จ๐Ÿ‡ญ SwitzerlandTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ฌ๐Ÿ‡ง United KingdomTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡บ๐Ÿ‡ธ United StatesTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ฆ๐Ÿ‡ฑ AlbaniaTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ง๐Ÿ‡พ BelarusTax comparison๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg vs ๐Ÿ‡ง๐Ÿ‡ฆ Bosnia and HerzegovinaTax comparison