Luxembourg vs Poland
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐บ Luxembourg โ 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%โ400% = effective 6โ10.5%), 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.
๐ต๐ฑ Poland โ Local & Municipal Taxes
Poland's 16 voivodeships do not levy their own income taxes. Municipalities collect property tax (podatek od nieruchomoลci) within national limits. The Polish Deal (Polski ลad) reforms of 2022 significantly changed income tax. A health insurance contribution (9% of income) is no longer deductible, effectively raising the burden. The JDG (sole proprietor) regime offers flat 19% or lump-sum options.
Luxembourg vs Poland: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐บ Luxembourg has a higher top income tax rate (0โ42% vs 12โ32%). ๐ต๐ฑ Poland is more favourable for high earners.
๐ VAT/Sales Tax: Poland has a higher consumption tax (3โ17% vs 5โ23%).
๐ข Corporate Tax: ๐ต๐ฑ Poland offers a lower corporate rate (19% vs 24.94%), which can influence business location decisions.
๐ Capital Gains: ๐ต๐ฑ Poland taxes investment gains at a lower rate (19% vs 42%), benefiting investors.