Japan 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
🇯🇵 Japan — Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
🇱🇺 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.
Japan vs Luxembourg: Key Tax Differences (2026)
💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (5–45% vs 0–42%). 🇱🇺 Luxembourg is more favourable for high earners.
🛒 VAT/Sales Tax: Luxembourg has a higher consumption tax (8–10% vs 3–17%).
🏢 Corporate Tax: 🇱🇺 Luxembourg offers a lower corporate rate (24.94% vs 30.62%), which can influence business location decisions.
📈 Capital Gains: 🇯🇵 Japan taxes investment gains at a lower rate (20.315% vs 42%), benefiting investors.