Finance
Luxembourg taxes
Luxembourg's income-tax classes (1, 1a, 2) explained: who falls into each
Luxembourg sorts taxpayers into class 1 (single, no children), class 1a (single parents, widowed, people 65+) and class 2 (married couples and PACS partners taxed jointly, usually the most favourable). Your class is on your withholding tax card. Tax runs from 0% to 42% plus a 7-9% surcharge. Married cross-border workers default to class 1 unless they request assimilation. A reform replaces the classes with one from 2028.