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Poland vs Luxembourg
Tax Rate Comparison

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

🇵🇱 Poland
vs
🇱🇺 Luxembourg
Tax Year:

💰 Personal Income Tax Calculator

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

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
12–32%
Potential third (40%) bracket for very high earners
No change
0–42%
Tax reform package continuing; thresholds indexed
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5–23%
Food VAT returning to 5% after 0% temporary measure
No change
3–17%
Standard 17% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
9–19%
CIT stable; EU harmonization ongoing
No change
~24.94%
Global minimum tax fully embedded in domestic law
No change

Capital Gains Tax

Capital Gains Tax
19%
Potential revision to capital income taxation
No change
0–42%
No major reform
No change

Social Security & Payroll

Social Security / Payroll
~34.6%
Pension system pressures; contributions stable
No change
~27%
Pension reform discussions; contribution structure stable
No change
State, Regional & Local Taxes

🇵🇱 PolandLocal & Municipal Taxes

Poland's 16 voivodeships do not levy their own income taxes. Municipalities collect property tax (podatek od nieruchomości) within national limits. The Polish Deal (Polski Ład) 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.

🇱🇺 LuxembourgMunicipal 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.

⚠️ 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.

Poland vs Luxembourg: Key Tax Differences (2026)

💰 Income Tax: 🇱🇺 Luxembourg has a higher top income tax rate (12–32% vs 0–42%). 🇵🇱 Poland is more favourable for high earners.

🛒 VAT/Sales Tax: Poland has a higher consumption tax (5–23% vs 3–17%).

🏢 Corporate Tax: 🇵🇱 Poland offers a lower corporate rate (19% vs 24.94%), which can influence business location decisions.

📈 Capital Gains: 🇵🇱 Poland taxes investment gains at a lower rate (19% vs 42%), benefiting investors.

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