A tax class in Luxembourg is not a tax bracket. It is a label on a small piece of paper that decides how much your employer takes from every payslip. Understanding Luxembourg tax classes is the quickest way to avoid a nasty surprise in your first month of work.
What are Luxembourg tax classes and what do they do?
Luxembourg has three classes for individuals: 1, 1a and 2. They set the scale used to calculate the income tax withheld on your wages. They sit on your fiche de retenue d'impôt, the tax withholding card, which the tax administration (Administration des contributions directes, ACD) issues and your employer reads.
Your class does not change the tax law you are subject to; it changes how your situation is taken into account. A couple taxed jointly is in class 2, for example, because the scale is applied to the household income in a more favourable way. The calculation method is in the tax law, and the ACD's online simulator is the sensible way to see the difference in euros.
Which class are you in?
Article 119 of the income tax law sets the three classes:
- Class 1 is the default: anyone who does not fall into class 1a or class 2, which covers most single people.
- Class 1a applies, unless class 2 does, to widowed people, to people who receive a tax reduction for a child (modération d'impôt pour enfant), and to people who had turned 64 by the start of the tax year. That is why Guichet.lu says a taxpayer who becomes a parent through birth or adoption during the year can move to class 1a, unless they qualify for class 2.
- Class 2 applies to spouses, and under conditions to partners, taxed jointly. It also covers, for three years, people who were widowed and, under conditions, people who divorced or separated. Guichet.lu says it is applied to a taxpayer who marries during the year. Since tax year 2018, married taxpayers can ask for individual taxation instead.
If you are married, in a registered partnership, separated or a single parent, ask the tax office which class fits you rather than assuming.
How does the tax card work for a new arrival?
The card is automatic. Once your employer declares you to the social security centre (CCSS), the ACD issues the card and sends an electronic version to your employer. This takes about 30 working days on average. A new card is also issued after certain changes, such as a new employer or a change of address or civil status. Pensioners receive a copy for information.
If no card arrives within 30 working days of the start of the job, Guichet.lu says to contact the competent RTS office (the withholding-tax office for salaries) and tell your employer the request is pending. See how this fits into the first weeks in our guide to moving to Luxembourg.
Not sure whether you or your partner belong in class 1, 1a or 2, or whether to ask for individual taxation? Moovy can walk you through the official criteria and prepare the questions to ask the tax office. The ACD decides your class; Moovy helps you arrive prepared.
What happens without a tax card?
Your employer cannot guess. Without a card, the law (article 143) makes it withhold tax at the most expensive rates, unless the ACD grants an exemption. That can be a lot more than you would pay with a proper card. The excess is not lost: it can be corrected when the card reaches the employer, or through a tax return or an annual adjustment. But it is cash flow you would rather keep. Chase the RTS office early if your first payslip looks heavy.
The 33% figure you may read online is something else. If you have several salaries or pensions, the main one follows your class, and the others are taxed at a fixed rate written on an additional card: 33% in class 1, 21% in class 1a and 15% in class 2, which you can ask to lower (Guichet.lu).
How much tax goes with each class?
The scale in force since tax year 2025 is published by the ACD (Mémorial A N° 590 of 24 December 2024; article 118 of the income tax law). For class 1: no tax up to €13,230; then slices of about €2,200 to €2,300 taxed at 8%, 9%, 10% and so on, up to 38% for the slice ending at €54,090; 39% from €54,090 to €117,450; 40% up to €176,160; 41% up to €234,870; and 42% above. Each rate only applies to the part of income in its slice. Class 2 uses the same scale on household income in a more favourable way, so do not apply the class 1 table to a couple.
On top of the tax, an employment fund contribution (often called the employment fund surcharge) is added: 7% of the tax, rising to 9% above €150,000 of adjusted taxable income for classes 1 and 1a, and above €300,000 for class 2, according to the ACD.
Treat these as the rules in force in 2026, and check the ACD's tables before you rely on them for a decision, because the scale is adjusted by law from time to time. For the bigger picture, see income tax in Luxembourg for new residents.
What mistakes should you avoid?
- Staying in class 1 after getting married. Class 2 follows joint taxation. Marriage during the year gives access to it, but you may need to report it.
- Not reporting a change of address or civil status to your commune. Your card is updated from these changes.
- Working without a card and not chasing. Withholding at the most expensive rates can bite.
- Forgetting your own return. The card is a withholding tool, not your final tax bill. You can file a return or ask for an annual adjustment (form 163 R for employees) to recover deductions; the deadline is 31 December of the following year.
What about cross-border workers?
If you live in France, Belgium or Germany and work in Luxembourg, you are a non-resident, and the logic is different: you may be taxed on your Luxembourg income only, unless you opt to be treated like a resident. See cross-border workers in Luxembourg for the 34-day rule and the 90% test.
How do Luxembourg tax classes change when your life changes?
Your class follows your situation, and the tax administration cannot see most of it unless someone tells it.
- You marry or register a partnership. Class 2 becomes available. Guichet.lu says it is applied to a taxpayer who marries during the year, and since tax year 2018 married taxpayers can ask for individual taxation. Compare both versions before choosing, because the effect depends on the two incomes.
- A child is born or adopted. Guichet.lu says class 1a is applied to a taxpayer who becomes a parent during the year, unless class 2 applies, and a child allowance (modération d'impôt pour enfant) can be requested.
- You separate, divorce or are widowed. Your class is reviewed; report it to your commune so a new card is issued.
- You change employer. A new card is issued, and you should check that the new employer received it.
- You turn 64. Class 1a applies from the tax year that starts after your 64th birthday, unless you are in class 2.
Each change should start with a notice to your commune. The tax card is rebuilt from the register, so a missing update is the most common reason for a wrong class.
What should you check on the Luxembourg tax classes card itself?
When the card reaches you, read it once, slowly. Check that your name and address are right, that your class matches your family situation, that any child allowance is listed, and that your employer is the one named. If something is off, correct it with the RTS office rather than hoping the annual adjustment will fix it later. The annual adjustment can recover overpaid tax, but money withheld in error is money you will not have for months.
Rules and scales are changed by law from time to time. If your household is not simple, with a partner earning abroad, a separation or income in two countries, have a tax adviser in Luxembourg confirm your class and the choice between joint and individual taxation before you decide.