| Luxembourg | United States | Difference in United States | |
|---|---|---|---|
| Gross Income | 36,144.39 EUR / 30,000.00 GBP | 37,699.47 USD / 30,000.00 GBP | - 0.00 GBP |
| Tax Due | 9,282.54 EUR / 7,704.55 GBP | 7,352.85 USD / 5,851.16 GBP | - 1,853.39 GBP |
| Net Income | 26,861.85 EUR / 22,295.45 GBP | 30,346.62 USD / 24,148.84 GBP | + 1,853.39 GBP |
| Overall Tax Rate | 25.7 % | 19.5 % | - 6.20 %. |
Figures based upon 1 EUR = 0.83000432 GBP.
Figures based upon 1 USD = 0.79576716 GBP.
In Luxembourg, an income of 36,144.39 EUR / 30,000.00 GBP is more than the lowest average advertised salary of 24,000.00 EUR / 19,920.10 GBP and less than the country's average income of 55,000.00 EUR / 45,650.24 GBP.
In United States, an income of 37,699.47 USD / 30,000.00 GBP is more than the lowest average advertised salary of 24,694.00 USD / 19,650.67 GBP and less than the country's average income of 60,000.00 USD / 47,746.03 GBP.
Here are how much some common purchases cost in Luxembourg vs United States:
| Luxembourg | United States | Difference in United States | |
|---|---|---|---|
| Water Bottle (1.5L) | 1.10 EUR / 0.91 GBP | 1.75 USD / 1.39 GBP | + 0.48 GBP |
| Milk Bottle (1L) | 1.30 EUR / 1.08 GBP | 0.82 USD / 0.65 GBP | - 0.43 GBP |
| Pint of Beer | 5.00 EUR / 4.15 GBP | 4.00 USD / 3.18 GBP | - 0.97 GBP |
| Bread (500g) | 1.94 EUR / 1.61 GBP | 2.58 USD / 2.05 GBP | + 0.44 GBP |
| Chicken Breasts (1kg) | 11.56 EUR / 9.59 GBP | 8.48 USD / 6.75 GBP | - 2.84 GBP |
| Petrol UK Gallon | 5.45 EUR / 4.52 GBP | 3.27 USD / 2.60 GBP | - 1.93 GBP |
| Volkswagen Golf or Equivalent | 21,545.00 EUR / 17,882.44 GBP | 21,845.00 USD / 17,383.53 GBP | - 498.91 GBP |
| Broadband Internet Monthly | 48.77 EUR / 40.48 GBP | 62.44 USD / 49.69 GBP | + 9.21 GBP |
| Rent One Bedroom Apt. In City (Monthly) | 1,409.62 EUR / 1,169.99 GBP | 1,261.46 USD / 1,003.83 GBP | - 166.16 GBP |
| Purchase One Bedroom Apt. In City | 282,333.45 EUR / 234,337.98 GBP | 89,561.15 USD / 71,269.82 GBP | - 163,068.16 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%.
The average tax rate is 31.7% with a marginal rate of 54.2% for additional income.
Single employed people are put in the tax class '1' and receive 12,438 EUR as a zero rated tax band.
The lowest rate of tax is the first band at 8 percent
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!
There is an additional employment fund surcharge added to the the total calculated tax amount. It is 7 percent for basic earners and 9 percent for higher earners (those earning over 165,600 EUR).
Tax bands are as follow:
Below 12438 EUR - 0%
Between 12438 EUR and 14508 EUR - 8%.
Between 14508 EUR and 16578 EUR - 9%.
Between 16578 EUR and 18648 EUR - 10%.
Between 18648 EUR and 20718 EUR - 11%.
Between 20718 EUR and 22788 EUR - 12%.
Between 22788 EUR and 24939 EUR - 14%.
Between 24939 EUR and 27090 EUR - 16%.
Between 27090 EUR and 29241 EUR - 18%.
Between 29241 EUR and 31392 EUR - 20%.
Between 31392 EUR and 33543 EUR - 22%.
Between 33543 EUR and 35694 EUR - 24%.
Between 35694 EUR and 37845 EUR - 26%.
Between 37845 EUR and 39996 EUR - 28%.
Between 39996 EUR and 42147 EUR - 30%.
Between 42147 EUR and 44298 EUR - 32%.
Between 44298 EUR and 46449 EUR - 34%.
Between 46449 EUR and 48600 EUR - 36%.
Between 48600 EUR and 50751 EUR - 38%.
Between 50751 EUR and 110403 EUR - 39%.
Between 110403 EUR and 165600 EUR - 40%.
Between 165600 EUR and 220788 EUR - 41%.
Above 220788 EUR - 42%.
Social contributions equate to (8% toward pension, 3.05% toward health) plus (1.4% of income toward welfare).
There is also an accident insurance set at 0.70% multiplied by the employers' accident history. For comparative purposes we will use the 0.70% base rate.
There is a minimum contribution level of 30,851.16 EUR. If the salary is below this, the social contributions are calculated at this level.
There is a maximum contribution level of 154,255.68 EUR. If the salary is above this, the social contributions are calcualted at this level.
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 North America, United States covers an area of 9,144,930 square kilometers.
United States has a Gross Domestic Product (PPP) of 18,561.93 ($ Billion) from a population of 326,474,013.
The United States has both Federal and State taxes. For comparative purposes we will use New York state here.
A progressive tax system spread over 7 bands ranging from 10% to 37%.
2024 Federal Tax bands are as follow:
Below 11600 USD - 10%
Between 11600 USD and 47150 USD - 12%.
Between 47150 USD and 100525 USD - 22%.
Between 100525 USD and 191950 USD - 24%.
Between 191950 USD and 243725 USD - 32%.
Between 243725 USD and 609350 USD - 35%.
Above 609350 USD - 37%.
The standard single person's deduction is 14,600 USD and the personal exemption is now 0 USD (2024). The Tax Cuts and Jobs Act of 2017 reduced personal exemptions to zero for tax years 2018 through 2025.
The PEP provision (personal exemption phaseout) tapers the personal exemption when income is over 261,500 USD. 2% reduction for every 2,500 USD over the limit.
FICA Taxes: Social security tax is 6.2% on up to 168,600 USD of gross income (2024).
Medicare hospital insurance tax is 1.45% of all gross income - increased to 2.35% on income over 200,000 USD (single person).
The average 401(k) contribution (workplace pension) rate is typically around 7% of an employee's salary. It is deducted from salary before calculating taxes (federal, state and city).
New York state taxes are spread across 10 bands ranging from 4% to 10.9%
Below 8950 USD - 4%
Between 8950 USD and 13900 USD - 4.5%.
Between 13900 USD and 21400 USD - 5.25%.
Between 21400 USD and 80650 USD - 5.9%.
Between 80650 USD and 215400 USD - 6.09%.
Between 215400 USD and 1077550 USD - 6.41%.
Between 1077550 USD and 5000000 USD - 6.85%.
Between 5000000 USD and 25000000 USD - 9.65%.
Between 25000000 USD and 50000000 USD - 10.3%.
Above 50000000 USD - 10.9%.
New York state tax has a standard deduction of 8,000 USD for a single filer.
Residents of New York City also pay city income tax, which range from 3.078% to 3.876%.
Below 12000 USD - 3.078%
Between 12000 USD and 25000 USD - 3.762%.
Between 25000 USD and 50000 USD - 3.819%.
Above 50000 USD - 3.876%.
Source: https://www.irs.gov/tax-professionals/tax-code-regulations-and-official-guidance.
Source: XE.com (Currency Conversion).
Source: SalaryExplorer.com (Averages from average salaries in major job categories).
Source: Numbeo.com (Cost of living).
This calculator allows you to calculate income taxes and social contributions equivalent for Luxembourg and United States 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 States'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.
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!
Source: https://www.impots.gouv.fr/portail/international
Source: http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/how_your_tax_is_calculated.html
Source: http://www1.agenziaentrate.gov.it/english/revenue_agency/index_revenue.htm
Source: http://www.impotsdirects.public.lu/fr.html
Source: http://www.agenciatributaria.es/AEAT.internet/en_gb/Inicio.shtml
Source: https://www.estv.admin.ch/estv/en/home.html.
Source: https://www.gov.uk/government/organisations/hm-revenue-customs.
Source: http://www.bundesfinanzministerium.de/Web/EN/Issues/Taxation/taxation.html.
Source: https://www.irs.gov/tax-professionals/tax-code-regulations-and-official-guidance.
Source: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html
Source: https://www.ato.gov.au.
Source: http://www.ird.govt.nz/how-to/taxrates-codes/rates/itaxsalaryandwage-incometaxrates.html.
Source: https://www.nta.go.jp/foreign_language/.
Source: http://www.chinatax.gov.cn/2013/n2925/.
* calculations are currently based on the 2024 tax rules, rates and allowances for comparable single individuals in each country.