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Luxembourg vs France
Tax Rate Comparison

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

🇱🇺 Luxembourg
vs
🇫🇷 France
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–42%
Tax reform package continuing; thresholds indexed
No change
0–45%
Surcharges normalized; inflation adjustment
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
3–17%
Standard 17% maintained
No change
5.5–20%
Standard 20% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
~24.94%
Global minimum tax fully embedded in domestic law
No change
25%
Large company surcharge expired; flat 25%
No change

Capital Gains Tax

Capital Gains Tax
0–42%
No major reform
No change
30%
PFU at 30% maintained
No change

Social Security & Payroll

Social Security / Payroll
~27%
Pension reform discussions; contribution structure stable
No change
~45%
Contribution rates stable; healthcare costs rising
No change
State, Regional & Local Taxes

🇱🇺 LuxembourgMunicipal 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.

🇫🇷 FranceLocal & Regional Contributions

France's 18 regions and 96 metropolitan departments do not set income tax but levy business taxes (CFE; CVAE abolished 2024). Taxe foncière (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.

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

Luxembourg vs France: Key Tax Differences (2026)

💰 Income Tax: 🇫🇷 France has a higher top income tax rate (0–42% vs 0–45%). 🇱🇺 Luxembourg is more favourable for high earners.

🛒 VAT/Sales Tax: France has a higher consumption tax (3–17% vs 5.5–20%).

🏢 Corporate Tax: Corporate rates are similar in both countries (~24.94% vs 25%).

📈 Capital Gains: 🇫🇷 France taxes investment gains at a lower rate (30% vs 42%), benefiting investors.

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