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comparing tax in luxembourg with germany

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LuxembourgGermanyDifference in Germany
Gross Income 35,098.68 EUR / 30,000.00 GBP 35,098.68 EUR / 30,000.00 GBP - 0.00 GBP
Tax Due 9,219.38 EUR / 7,880.11 GBP 10,072.68 EUR / 8,609.45 GBP + 729.34 GBP
Net Income 25,879.30 EUR / 22,119.89 GBP 25,026.00 EUR / 21,390.55 GBP - 729.34 GBP
Overall Tax Rate 26.3 % 28.7 % + 2.40 %.

Figures based upon 1 EUR = 0.854733 GBP.

Figures based upon 1 EUR = 0.854733 GBP.

In Luxembourg, an income of 35,098.68 EUR / 30,000.00 GBP is more than the lowest average advertised salary of 24,000.00 EUR / 20,513.59 GBP and less than the country's average income of 55,000.00 EUR / 47,010.32 GBP.

In Germany, an income of 35,098.68 EUR / 30,000.00 GBP is more than the lowest average advertised salary of 18,900.00 EUR / 16,154.45 GBP and less than the country's average income of 43,000.00 EUR / 36,753.52 GBP.

Here are how much some common purchases cost in Luxembourg vs Germany:

LuxembourgGermanyDifference in Germany
Water Bottle (1.5L) 1.10 EUR / 0.94 GBP 0.34 EUR / 0.29 GBP - 0.65 GBP
Milk Bottle (1L) 1.30 EUR / 1.11 GBP 0.70 EUR / 0.60 GBP - 0.51 GBP
Pint of Beer 5.00 EUR / 4.27 GBP 3.50 EUR / 2.99 GBP - 1.28 GBP
Bread (500g) 1.94 EUR / 1.66 GBP 1.30 EUR / 1.11 GBP - 0.55 GBP
Chicken Breasts (1kg) 11.56 EUR / 9.88 GBP 7.34 EUR / 6.27 GBP - 3.61 GBP
Petrol UK Gallon 5.45 EUR / 4.66 GBP 6.36 EUR / 5.44 GBP + 0.78 GBP
Volkswagen Golf or Equivalent 21,545.00 EUR / 18,415.22 GBP 20,000.00 EUR / 17,094.66 GBP - 1,320.56 GBP
Broadband Internet Monthly 48.77 EUR / 41.69 GBP 30.14 EUR / 25.76 GBP - 15.93 GBP
Rent One Bedroom Apt. In City (Monthly) 1,409.62 EUR / 1,204.85 GBP 702.47 EUR / 600.42 GBP - 604.43 GBP
Purchase One Bedroom Apt. In City 282,333.45 EUR / 241,319.72 GBP 167,807.15 EUR / 143,430.31 GBP - 97,889.41 GBP

Part of Europe, Luxembourg covers an area of 2,590 square kilometers.

Luxembourg has a Gross Domestic Product (PPP) of 58.74 ($ Billion) from a population of 584,103.

A progressive tax system spread across 23 bands! - from 0% to 42%.

Single employed people are put in the tax class '1' and receive 11,265 EUR as a zero rated tax band.

Before calculating tax, certain deductions can be applied.

All employees have a standard minimum tax deductible expense of 540 EUR for work-related expenses.

Luxembourg allow costs incurred travelling to and from work as a tax deductible expense - up to 2,574 EUR annually!

Tax bands are as follow:

Below 11265 EUR - 0%

Between 11265 EUR and 13137 EUR - 8%.

Between 13137 EUR and 15009 EUR - 9%.

Between 15009 EUR and 16881 EUR - 10%.

Between 16881 EUR and 18753 EUR - 11%.

Between 18753 EUR and 20625 EUR - 12%.

Between 20625 EUR and 22569 EUR - 14%.

Between 22569 EUR and 24513 EUR - 16%.

Between 24513 EUR and 26457 EUR - 18%.

Between 26457 EUR and 28401 EUR - 20%.

Between 28401 EUR and 30345 EUR - 22%.

Between 30345 EUR and 32289 EUR - 24%.

Between 32289 EUR and 34233 EUR - 26%.

Between 34233 EUR and 36177 EUR - 28%.

Between 36177 EUR and 38121 EUR - 30%.

Between 38121 EUR and 40065 EUR - 32%.

Between 40065 EUR and 42009 EUR - 34%.

Between 42009 EUR and 43953 EUR - 36%.

Between 43953 EUR and 45897 EUR - 38%.

Between 45897 EUR and 100002 EUR - 39%.

Between 100002 EUR and 150000 EUR - 40%.

Between 150000 EUR and 200004 EUR - 41%.

Above 200004 EUR - 42%.

A solidarity surcharge is applied for employed people equivalent to 7% of income (up to 150,000 EUR) and 9% (over 150,000 EUR).

Social contributions equate to (8% toward pension, 3.05% toward health capped to 115,000 EUR of income) plus (1.4% of income after 5,769 EUR toward welfare).

Source: http://www.impotsdirects.public.lu/fr.html

Source: XE.com (Currency Conversion).

Source: SalaryExplorer.com (Averages from average salaries in major job categories).

Source: Numbeo.com (Cost of living).

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Part of Europe, Germany covers an area of 348,621 square kilometers.

Germany has a Gross Domestic Product (PPP) of 3,979.08 ($ Billion) from a population of 80,636,124.

A progressive tax system spread over 5 bands ranging from 0% to 45%.

Tax bands are as follow:

Below 9168 EUR - 0%

Between 9168 EUR and 55960 EUR - 14%.

Between 55960 EUR and 265326 EUR - 42%.

Above 265326 EUR - 45%.

There is also a solidarity tax surcharge rate of 5.5%.

A default deduction is allowed of 1,000 EUR for work-related expenses.

A tax allowance of 1,000 EUR is applied for employees.

Up to 4,500 maximum is allowed as a deduction for travel expenses to and from work - here we use 2,500 EUR.

Social contributions made by the employee are : Pension 9.35%, Unemployment 1.5%, Health 7.9% and Nursing 1.4%.

These contributions are made as a percentage of the entire gross wage - limited to 52,200 EUR (Health and Nursing) and 76,200 (All Other - West Germany).

Source: http://www.bundesfinanzministerium.de/Web/EN/Issues/Taxation/taxation.html.

Source: XE.com (Currency Conversion).

Source: SalaryExplorer.com (Averages from average salaries in major job categories).

Source: Numbeo.com (Cost of living).

Help

This calculator allows you to calculate income taxes and social contributions equivalent for Luxembourg and Germany and allow comparison between both. You can choose the preferred currency for the input amounts and displayed calculation. For example: If you choose GBP as your preferred currency, then the income entered will be converted to Luxembourg's and Germany's native currencies for the calculation so that correct income equivalent is used. The results will then be shown in the native currencies and GBP.

How we compare world taxes

We have trawled through the quagmire of tax legislation for 16 of the World's major economies and created a comparable position as close to the UK's PAYE (Pay As You Earn) system for employed people.

We look at each country's taxation for employed people, as well as things like medical care which are part of social contributions for some countries or require mandatory purchase of health insurance.

Combining this information lets us calculate taxes for each of the 16 countries and then do not only a taxation comparison but also a comparison of buying power based upon commonly purchased items.

It is quick and easy to use and you can get a detailed result at the click/tap of a button!

Compare tax using these examples:

We currently support the following countries - by clicking on the links below you can just do an individual tax calculation for those countries - or scroll up and compare tax between two countries directly!

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