Luxembourg vs United States
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 States — State & Local Taxes
The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.
Luxembourg vs United States: Key Tax Differences (2026)
💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (0–42% vs 10–37%). 🇺🇸 United States is more favourable for high earners.
🛒 VAT/Sales Tax: Luxembourg has a higher consumption tax (3–17% vs 0–11%).
🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 24.94%), which can influence business location decisions.
📈 Capital Gains: 🇺🇸 United States taxes investment gains at a lower rate (20% vs 42%), benefiting investors.