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United States vs Luxembourg
Tax Rate Comparison

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

πŸ‡ΊπŸ‡Έ United States
vs
πŸ‡±πŸ‡Ί Luxembourg
Tax Year:

πŸ’° Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
10–37%
TCJA provisions extended; no sunset
No change
0–42%
Tax reform package continuing; thresholds indexed
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
3–17%
Standard 17% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
~24.94%
Global minimum tax fully embedded in domestic law
No change
Capital Gains Tax
Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
0–42%
No major reform
No change
Social Security & Payroll
Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~27%
Pension reform discussions; contribution structure stable
No change
State, Regional & Local Taxes

πŸ‡ΊπŸ‡Έ United States β€” State & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

πŸ‡±πŸ‡Ί Luxembourg β€” 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.

⚠️ 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.

United States vs Luxembourg: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡±πŸ‡Ί Luxembourg has a higher top income tax rate (10–37% vs 0–42%). πŸ‡ΊπŸ‡Έ United States is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Luxembourg has a higher consumption tax (0–11% vs 3–17%).

🏒 Corporate Tax: πŸ‡ΊπŸ‡Έ United States offers a lower corporate rate (21% vs 24.94%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ΊπŸ‡Έ United States taxes investment gains at a lower rate (20% vs 42%), benefiting investors.

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