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Luxembourg vs Czech Republic
Tax Rate Comparison

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

🇱🇺 Luxembourg
vs
🇨🇿 Czech Republic
Tax Year:

💰 Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–42%
Tax reform package continuing; thresholds indexed
No change
15–23%
15%/23% two-rate system maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
3–17%
Standard 17% maintained
No change
12–21%
Standard 21% unchanged
No change

Corporate Tax Rate

Corporate Tax Rate
~24.94%
Global minimum tax fully embedded in domestic law
No change
21%
Pillar Two compliance active
No change

Capital Gains Tax

Capital Gains Tax
0–42%
No major reform
No change
0–23%
No change to exemption rules
No change

Social Security & Payroll

Social Security / Payroll
~27%
Pension reform discussions; contribution structure stable
No change
~45%
Pension system reform discussions ongoing
No change
State, Regional & Local Taxes

🇱🇺 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.

🇨🇿 Czech Republic — Municipal Property & Road Taxes

The Czech Republic's 14 regions (kraje) and 6,254 municipalities do not levy independent income taxes — this is nationally set. Municipalities may apply a local coefficient (1–5x) to property tax (daň z nemovitých věcí), significantly multiplying the base tax in cities like Prague. Prague applies a coefficient of 4x. Road tax (silniční daň) applies to business vehicles. The flat tax regime (paušální daň) simplifies obligations for small self-employed.

⚠️ 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 Czech Republic: Key Tax Differences (2026)

💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (0–42% vs 15–23%). 🇨🇿 Czech Republic is more favourable for high earners.

🛒 VAT/Sales Tax: Czech Republic has a higher consumption tax (3–17% vs 12–21%).

🏢 Corporate Tax: 🇨🇿 Czech Republic offers a lower corporate rate (21% vs 24.94%), which can influence business location decisions.

📈 Capital Gains: 🇨🇿 Czech Republic taxes investment gains at a lower rate (23% vs 42%), benefiting investors.

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