Luxembourg vs Germany
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
🇱🇺 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.
🇩🇪 Germany — Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 Bundesländer apply federal income tax rates uniformly — no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
Luxembourg vs Germany: Key Tax Differences (2026)
💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (0–42% vs 14–45%). 🇱🇺 Luxembourg is more favourable for high earners.
🛒 VAT/Sales Tax: Germany has a higher consumption tax (3–17% vs 7–19%).
🏢 Corporate Tax: 🇱🇺 Luxembourg offers a lower corporate rate (24.94% vs 29%), which can influence business location decisions.
📈 Capital Gains: 🇩🇪 Germany taxes investment gains at a lower rate (25% vs 42%), benefiting investors.