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comparing tax in luxembourg with united kingdom

LuxembourgUnited KingdomDifference in United Kingdom
Gross Income 34,255.32 EUR / 30,000.00 GBP 30,000.00 GBP / 30,000.00 GBP - 0.00 GBP
Tax Due 8,852.94 EUR / 7,753.20 GBP 6,064.16 GBP / 6,064.16 GBP - 1,689.04 GBP
Net Income 25,402.38 EUR / 22,246.80 GBP 23,935.84 GBP / 23,935.84 GBP + 1,689.04 GBP
Overall Tax Rate 25.8 % 20.2 % - 5.60 %.

Figures based upon 1 EUR = 0.87577638 GBP.

Figures based upon 1 GBP = 1 GBP.

In Luxembourg, an income of 34,255.32 EUR / 30,000.00 GBP is more than the lowest average advertised salary of 24,000.00 EUR / 21,018.63 GBP and less than the country's average income of 55,000.00 EUR / 48,167.70 GBP.

In United Kingdom, an income of 30,000.00 GBP / 30,000.00 GBP is more than the lowest average advertised salary of 12,757.00 GBP / 12,757.00 GBP and less than the country's average income of 33,000.00 GBP / 33,000.00 GBP.

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

LuxembourgUnited KingdomDifference in United Kingdom
Water Bottle (1.5L) 1.10 EUR / 0.96 GBP 0.95 GBP / 0.95 GBP - 0.01 GBP
Milk Bottle (1L) 1.30 EUR / 1.14 GBP 0.90 GBP / 0.90 GBP - 0.24 GBP
Pint of Beer 5.00 EUR / 4.38 GBP 3.50 GBP / 3.50 GBP - 0.88 GBP
Bread (500g) 1.94 EUR / 1.70 GBP 0.98 GBP / 0.98 GBP - 0.72 GBP
Chicken Breasts (1kg) 11.56 EUR / 10.12 GBP 5.67 GBP / 5.67 GBP - 4.45 GBP
Petrol UK Gallon 5.45 EUR / 4.77 GBP 5.68 GBP / 5.68 GBP + 0.90 GBP
Volkswagen Golf or Equivalent 21,545.00 EUR / 18,868.60 GBP 18,000.00 GBP / 18,000.00 GBP - 868.60 GBP
Broadband Internet Monthly 48.77 EUR / 42.71 GBP 30.21 GBP / 30.21 GBP - 12.50 GBP
Rent One Bedroom Apt. In City (Monthly) 1,409.62 EUR / 1,234.51 GBP 722.24 GBP / 722.24 GBP - 512.27 GBP
Purchase One Bedroom Apt. In City 282,333.45 EUR / 247,260.97 GBP 139,346.55 GBP / 139,346.55 GBP - 107,914.42 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).

Part of Europe, United Kingdom covers an area of 241,917 square kilometers.

United Kingdom has a Gross Domestic Product (PPP) of 2,787.74 ($ Billion) from a population of 65,511,098.

A progressive tax system with 3 bands with tax rates from 20% to 45%.

Personal tax-free allowance provided of 12,500 GBP.

Personal allowance is reduced by 1 GBP for every 2 GBP over 100,000 GBP.

Tax bands are as follow:

Below 37500 GBP - 20%

Between 37500 GBP and 150000 GBP - 40%.

Above 150000 GBP - 45%.

Mandatory social security contributions (National Insurance) Class A bands are as follow:

Below 8632 GBP - 0%

Between 8632 GBP and 50024 GBP - 12%.

Above 50024 GBP - 2%.

Source: https://www.gov.uk/government/organisations/hm-revenue-customs.

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 United Kingdom 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 United Kingdom'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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