Net Salary on €60,000 in Luxembourg
Here is the full calculation for a single employee in tax class 1.
| Item | Per month | Per year |
|---|---|---|
| Gross salary | €5,000.00 | €60,000.00 |
| Pension insurance | −€425.00 | −€5,100.00 |
| Health insurance | −€152.50 | −€1,830.00 |
| Dependence insurance | −€60.40 | −€724.79 |
| Income tax | −€651.53 | −€7,818.38 |
| Employment fund surcharge | −€45.61 | −€547.29 |
| Tax credits CIS and CI-CO2 | €34.00 | €408.00 |
| Net salary | €3,698.96 | €44,387.54 |
Tax is charged on €51,325.21: gross pay minus social contributions, the €540 flat allowance for work expenses and the €480 flat allowance for special expenses. The credits of €408.00 are paid with the salary, even when they exceed the tax.
Tax Class 1 and Tax Class 2
Luxembourg sorts taxpayers into classes. Class 1 is for single people without children. Class 2 is for married couples and civil partners taxed jointly, and it uses splitting: the tax on half the income, doubled.
| Gross per year | Net class 1 | Net class 2 | Monthly gain in class 2 |
|---|---|---|---|
| €35,000 | €29,344.11 | €31,133.11 | €149.08 |
| €45,000 | €35,955.08 | €38,879.85 | €243.73 |
| €60,000 | €44,387.54 | €49,972.14 | €465.38 |
| €75,000 | €51,729.79 | €60,337.96 | €717.35 |
| €100,000 | €64,308.80 | €76,261.10 | €996.03 |
| €150,000 | €89,540.06 | €102,762.80 | €1,101.90 |
Class 2 assumes the partner has no income of their own. When both work, the joint income decides the rate. Class 1a, for single parents and people over 64, uses its own scale and is not covered.
Luxembourg Income Tax Scale
The scale has 23 bands from 0% to 42%. It was raised by 2.5 index tranches for 2025 and stays the same for 2026. Selected bands for class 1:
| Rate | Taxable income per year |
|---|---|
| 0% | €0 to €13,230 |
| 8% | €13,230 to €15,435 |
| 14% | €24,255 to €26,550 |
| 26% | €38,025 to €40,320 |
| 38% | €51,795 to €54,090 |
| 39% | €54,090 to €117,450 |
| 40% | €117,450 to €176,160 |
| 41% | €176,160 to €234,870 |
| 42% | over €234,870 |
Between €15,435 and €54,090 the rate climbs in steps of one or two points; above that it rises slowly to 42%. The employment fund surcharge then adds 7% of the tax, or 9% above €150,000 of taxable income in class 1.
Social Security Contributions in 2026
| Contribution | Employee rate | Base | On €60,000 |
|---|---|---|---|
| Pension insurance | 8.5% | up to €164,590 a year | €5,100.00 |
| Health insurance (care and cash benefits) | 3.05% | up to €164,590 a year | €1,830.00 |
| Dependence insurance | 1.4% | all pay minus €8,229 | €724.79 |
The pension rate went up from 8% to 8.5% on 1 January 2026 under the pension reform; the employer pays the same 8.5%. The ceiling is five times the social minimum wage, €13,518.68 a month until May and €13,856.63 from June 2026, when wages were indexed by 2.5%. Dependence insurance has no ceiling but exempts a quarter of the minimum wage.
Tax Credits for Employees: CIS and CI CO2
Every employee receives two credits, both cut back on higher pay and gone at €80,000:
- CIS: €600 a year for gross pay from €11,266 to €40,000, falling by 1.5% of each euro above. On €60,000 it is €300.00.
- CI CO2: €216 up to €40,000, falling by 0.54% of the excess, €108.00 at €60,000.
At €35,000 the two credits total €816.00, which is why low earners can see a near zero or even negative tax line.
Monthly Net Pay at Six Salaries
Class 1, twelve equal payments.
| Gross per year | Gross per month | Social contributions | Tax after credits | Net per month |
|---|---|---|---|---|
| €35,000 | €2,916.67 | €4,417.29 | €1,238.60 | €2,445.34 |
| €45,000 | €3,750.00 | €5,712.29 | €3,332.63 | €2,996.26 |
| €60,000 | €5,000.00 | €7,654.79 | €7,957.67 | €3,698.96 |
| €75,000 | €6,250.00 | €9,597.29 | €13,672.92 | €4,310.82 |
| €100,000 | €8,333.33 | €12,834.79 | €22,856.41 | €5,359.07 |
| €150,000 | €12,500.00 | €19,309.79 | €41,150.15 | €7,461.67 |
A 13th month or annual bonus is taxed with the year's income, so entering the annual total gives the right yearly net.
What Luxembourg Taxes and What It Does Not
- Taxed: salary, bonuses, the 13th month and benefits in kind such as a company car.
- Deductible: social contributions, work expenses (a flat €540 unless real costs are higher), and travel costs by distance on your tax card.
- Through the annual return: mortgage interest, private pension savings and insurance premiums can lower the final tax further.
Assumptions and Limits
- Class 1 or class 2 with one income; class 1a and the single parent credit are not modelled.
- No travel allowance (frais de déplacement) on the tax card.
- The temporary conjoncture credit agreed for June to December 2026 was not yet law when this page was written and is left out.
- The 9% surcharge is applied to the whole tax once taxable income passes the threshold, without the smoothing zone.
Sources and Rates for 2026
Administration des contributions directes (tax scale from 2025, splitting, fonds pour l'emploi, flat allowances, CIS and CI CO2 for 2026) and the Centre commun de la sécurité sociale (2026 contribution rates, ceilings and the dependence allowance). Rates for 2026; the tax scale is the 2025 one, unchanged for 2026.
Working near the border? Compare with the France Gross to Net Calculator, the Germany Gross to Net Calculator or the Netherlands Gross to Net Calculator, or go backwards with the Net to Gross Calculator.
Frequently Asked Questions
How much is €60,000 gross net in Luxembourg?
€44,387.54 a year in class 1, or €3,698.96 a month. In class 2 it is €49,972.14 a year.
What is the pension contribution rate in Luxembourg in 2026?
8.5% for the employee, up from 8% in 2025, charged on pay up to five times the social minimum wage.
What is the CIS tax credit?
The crédit d'impôt salarié, worth up to €600 a year in 2026. It falls above €40,000 of gross pay and disappears at €80,000. Your employer pays it out with your salary.
How much income is tax free in Luxembourg?
The first €13,230 of taxable income is taxed at 0% in class 1, and twice that in class 2.
Why is net pay higher in tax class 2?
Splitting halves the income before the scale applies, so less of it reaches the higher bands. On €60,000 class 2 saves €5,584.60 a year.
Does this calculator suit cross border workers from France, Belgium or Germany?
For the Luxembourg side of the payslip, yes: contributions and tax on Luxembourg work follow the same rules. Your tax class as a non resident depends on your household and the share of income earned in Luxembourg.