Personal income tax (PIT) and social security contributions (SSC) in Luxembourg

Luxembourg: Personal income tax (PIT) and social security contributions (SSC) was 40.16 Percentage of labour costs in 2025. ▲ Rising

Latest (2025)
40.16 Percentage of labour costs
Change on year
up 0.6%
World rank
11th
of 29 countries
All-time high
41.23 Percentage of labour costs
in 2023
All-time low
31.59 Percentage of labour costs
in 2002
Years of data
26
2000–2025

Personal income tax (PIT) and social security contributions (SSC) in Luxembourg, 2000–2025

0102030402000201220252000: 35.8 Percentage of labour costs2001: 34.5 Percentage of labour costs2002: 31.6 Percentage of labour costs2003: 32.1 Percentage of labour costs2004: 32.5 Percentage of labour costs2005: 33.4 Percentage of labour costs2006: 34 Percentage of labour costs2007: 35 Percentage of labour costs2008: 34.7 Percentage of labour costs2009: 34.9 Percentage of labour costs2010: 35.3 Percentage of labour costs2011: 37.3 Percentage of labour costs2012: 37.1 Percentage of labour costs2013: 38.2 Percentage of labour costs2014: 38.6 Percentage of labour costs2015: 39.5 Percentage of labour costs2016: 39.6 Percentage of labour costs2017: 37.8 Percentage of labour costs2018: 38.2 Percentage of labour costs2019: 38.5 Percentage of labour costs2020: 39.5 Percentage of labour costs2021: 39.8 Percentage of labour costs2022: 39.9 Percentage of labour costs2023: 41.2 Percentage of labour costs2024: 39.9 Percentage of labour costs2025: 40.2 Percentage of labour costs

Source: Organisation for Economic Co-operation and Development. Measured in Percentage of labour costs.

Analysis

In 2025, personal income tax (pit) and social security contributions (ssc) in Luxembourg stood at 40.16 Percentage of labour costs.

That represents a change of up 0.6% on the previous year and up 1.7% over ten years.

Over the whole period, personal income tax (pit) and social security contributions (ssc) in Luxembourg peaked at 41.23 Percentage of labour costs in 2023 and was at its lowest, 31.59 Percentage of labour costs, in 2002.

That places Luxembourg 11th out of 29 countries with data for 2025, putting it in the middle of the range.

The long-run direction has been consistently rising across the 26 years of available data.

Personal income tax (PIT) and social security contributions (SSC) in Luxembourg, year by year

Annual values for Personal income tax (PIT) and social security contributions (SSC) - average rates on gross wage earnings — Tax wedge in Luxembourg, 2000 to 2025.
Year Percentage of labour costs Change
2000 35.84 Percentage of labour costs
2001 34.48 Percentage of labour costs -3.8%
2002 31.59 Percentage of labour costs -8.4%
2003 32.12 Percentage of labour costs +1.7%
2004 32.53 Percentage of labour costs +1.3%
2005 33.39 Percentage of labour costs +2.7%
2006 34.01 Percentage of labour costs +1.8%
2007 35.02 Percentage of labour costs +3.0%
2008 34.66 Percentage of labour costs -1.0%
2009 34.9 Percentage of labour costs +0.7%
2010 35.27 Percentage of labour costs +1.1%
2011 37.26 Percentage of labour costs +5.6%
2012 37.08 Percentage of labour costs -0.5%
2013 38.22 Percentage of labour costs +3.1%
2014 38.63 Percentage of labour costs +1.1%
2015 39.49 Percentage of labour costs +2.2%
2016 39.58 Percentage of labour costs +0.2%
2017 37.79 Percentage of labour costs -4.5%
2018 38.23 Percentage of labour costs +1.2%
2019 38.46 Percentage of labour costs +0.6%
2020 39.45 Percentage of labour costs +2.6%
2021 39.75 Percentage of labour costs +0.8%
2022 39.94 Percentage of labour costs +0.5%
2023 41.23 Percentage of labour costs +3.2%
2024 39.92 Percentage of labour costs -3.2%
2025 40.16 Percentage of labour costs +0.6%

Averages by decade

DecadeAverage LowestHighest Years
2000s 33.85 Percentage of labour costs 31.59 Percentage of labour costs 35.84 Percentage of labour costs 10
2010s 38 Percentage of labour costs 35.27 Percentage of labour costs 39.58 Percentage of labour costs 10
2020s 40.08 Percentage of labour costs 39.45 Percentage of labour costs 41.23 Percentage of labour costs 6

Countries ranked near Luxembourg

  1. 8 Czechia 41.2 Percentage of labour costs compare
  2. 9 Hungary 41.15 Percentage of labour costs compare
  3. 10 Sweden 41.14 Percentage of labour costs compare
  4. 12 Portugal 39.34 Percentage of labour costs compare
  5. 13 Greece 39.34 Percentage of labour costs compare
  6. 14 Norway 36.39 Percentage of labour costs compare

See the full ranking of 38 places →

More economy & growth data for Luxembourg

All data for Luxembourg →

Frequently asked questions

What is personal income tax (pit) and social security contributions (ssc) in Luxembourg?
Personal income tax (pit) and social security contributions (ssc) in Luxembourg was 40.16 Percentage of labour costs in 2025, according to Organisation for Economic Co-operation and Development.
What is the highest personal income tax (pit) and social security contributions (ssc) recorded in Luxembourg?
The highest recorded value was 41.23 Percentage of labour costs in 2023.
What is the lowest personal income tax (pit) and social security contributions (ssc) recorded in Luxembourg?
The lowest recorded value was 31.59 Percentage of labour costs in 2002.
How does Luxembourg rank for personal income tax (pit) and social security contributions (ssc)?
Luxembourg ranks 11th out of 29 countries with data for 2025.
Is personal income tax (pit) and social security contributions (ssc) rising or falling in Luxembourg?
Over the last ten years it is up 1.7%. The long-run trend across the full record is rising.
Where does this Luxembourg data come from?
The figures come from Organisation for Economic Co-operation and Development, published as part of Personal income tax (PIT) and social security contributions (SSC) - average rates on gross wage earnings — Tax wedge. Statizoid updates them automatically from the source API.

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Personal income tax (PIT) and social security contributions (SSC) in Luxembourg. Statizoid, drawing on Organisation for Economic Co-operation and Development. Retrieved 11 September 2026, from https://economy.statizoid.com/stat/personal-income-tax-pit-and-social-security-contributions-ssc-average-rates-on-gross-wage/luxembourg/

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About this data

Indicator
Personal income tax (PIT) and social security contributions (SSC) - average rates on gross wage earnings — Tax wedge
Unit
Percentage of labour costs
Source
Organisation for Economic Co-operation and Development
Licence
OECD Terms and Conditions (attribution required)
Coverage
38 places, 988 data points, 2000–2025
Last refreshed

The average personal income tax (PIT) and social security contribution (SSC) rates for a single person without dependent, at various multiples (67%, 100%, 133%, 167%) of the average wage. Related topics: Taxing Wages, Labour taxation, Tax wedge decomposition, Average wage, Income, Household