Netherlands 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
🇳🇱 Netherlands — Municipal & Water Board Taxes
The Netherlands is a unitary state — income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.
🇱🇺 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.
Netherlands vs Luxembourg: Key Tax Differences (2026)
💰 Income Tax: 🇳🇱 Netherlands has a higher top income tax rate (9.32–49.5% vs 0–42%). 🇱🇺 Luxembourg is more favourable for high earners.
🛒 VAT/Sales Tax: Netherlands has a higher consumption tax (9–21% vs 3–17%).
🏢 Corporate Tax: 🇱🇺 Luxembourg offers a lower corporate rate (24.94% vs 25.8%), which can influence business location decisions.
📈 Capital Gains: 🇳🇱 Netherlands taxes investment gains at a lower rate (38% vs 42%), benefiting investors.