Luxembourg vs United Kingdom
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.
🇬🇧 United Kingdom — Devolved, Council & Business Rates
Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically £1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).
Luxembourg vs United Kingdom: Key Tax Differences (2026)
💰 Income Tax: 🇬🇧 United Kingdom has a higher top income tax rate (0–42% vs 0–45%). 🇱🇺 Luxembourg is more favourable for high earners.
🛒 VAT/Sales Tax: United Kingdom has a higher consumption tax (3–17% vs 0–20%).
🏢 Corporate Tax: Corporate rates are similar in both countries (~24.94% vs 19–25%).
📈 Capital Gains: 🇬🇧 United Kingdom taxes investment gains at a lower rate (24% vs 42%), benefiting investors.