Luxembourg Corporate Tax Calculator 2026 (23.87%)
Estimate corporate income tax in Luxembourg on any profit: tax due, effective rate and profit after tax, with the 23.87% headline rate and the reduced rates in force in September 2026.
The calculation runs in your browser: nothing you type is uploaded or stored. Results are estimates for planning, not tax advice. Check your own case with your adviser or the tax authority.
Corporate tax rules in Luxembourg
14% on profits up to €175,000.00, 16% on profits above €200,000.00, and the main rate less marginal relief (standard fraction 7/50) in between
Tax year 2026 (same rates as 2025)
23.87% in Luxembourg City for profit above EUR 200,000 (16% CIT x 1.07 = 17.12% + 6.75% municipal business tax)
Who qualifies for the lower rates
- CIT bands from tax year 2025: 14% if taxable income is below EUR 175,000; EUR 24,500 + 30% of income above EUR 175,000 for income from EUR 175,000 to EUR 200,000; 16% on all income above EUR 200,000.
- The uk_marginal shape reproduces this exactly: 16% x profit minus 14% x (200,000 - profit) between the two thresholds.
- Up to tax year 2024 the rates were 15% / EUR 26,250 + 31% / 17% (24.94% combined in Luxembourg City).
- Municipal business tax rates vary by commune; 6.75% is the Luxembourg City rate.
Local taxes and minimum taxes
Municipal business tax (ICC) is extra and set by each commune; Luxembourg City rate is 6.75% of taxable profit. Add it on top of CIT + surtax.
No minimum CIT since 2016 (replaced by minimum net wealth tax). Pillar Two IIR/UTPR/QDMTT for groups >= EUR 750m not modelled.
Filing and payment
CIT and municipal business tax returns by 31 December of the following year (electronic); quarterly advances fixed by the tax office; balance due by end of month after the assessment month
How the calculation works
The calculator applies the rates in the order the law does: band by band where a country taxes profit in slices, or one rate to the whole profit where eligibility decides the rate. Surcharges are applied to the tax, local business taxes to the profit. The result is an estimate: it does not include loss relief, tax credits, deferred tax or group rules.
Frequently asked questions
What is the corporate tax rate in Luxembourg?
14% on profits up to €175,000.00, 16% on profits above €200,000.00, and the main rate less marginal relief (standard fraction 7/50) in between
How much corporate tax is due on a profit of €100,000.00?
On a taxable profit of €100,000.00 this calculator estimates €21,730.00 of tax, an effective rate of 21.73%, before any credits, losses or local adjustments. Change the inputs above to model your own figures.
Who qualifies for the reduced rates?
CIT bands from tax year 2025: 14% if taxable income is below EUR 175,000; EUR 24,500 + 30% of income above EUR 175,000 for income from EUR 175,000 to EUR 200,000; 16% on all income above EUR 200,000. The uk_marginal shape reproduces this exactly: 16% x profit minus 14% x (200,000 - profit) between the two thresholds. Up to tax year 2024 the rates were 15% / EUR 26,250 + 31% / 17% (24.94% combined in Luxembourg City). Municipal business tax rates vary by commune; 6.75% is the Luxembourg City rate.
When is the corporate tax return due?
CIT and municipal business tax returns by 31 December of the following year (electronic); quarterly advances fixed by the tax office; balance due by end of month after the assessment month
Does the estimate include local taxes and minimum taxes?
Municipal business tax (ICC) is extra and set by each commune; Luxembourg City rate is 6.75% of taxable profit. Add it on top of CIT + surtax. No minimum CIT since 2016 (replaced by minimum net wealth tax). Pillar Two IIR/UTPR/QDMTT for groups >= EUR 750m not modelled.
Is the result my exact tax bill?
No. It applies the statutory rates to the profit you enter. Your real bill depends on how taxable profit is computed (non-deductible costs, losses brought forward, allowances), on credits and on advance payments already made.
Are these rates up to date?
They were checked against PwC and the other sources listed on this page on 30 September 2026. If a rate changes, type the new one into the rate field and the result updates at once.
Sources
- Luxembourg - Corporate - Taxes on corporate income (PwC Worldwide Tax Summaries, authoritative corroboration; last reviewed 31 July 2026) — PwC
- Luxembourg - Corporate - Tax administration (PwC Worldwide Tax Summaries) — PwC
- Législation 2026 (no 2026 law changing the IRC rates listed) — Administration des contributions directes (ACD)
- Législation 2024 (Loi du 20 décembre 2024, budget 2025) — Administration des contributions directes (ACD)
Rates, bands and thresholds were checked against these sources on 30 September 2026. Tax rules change: if a rate has moved, edit it in the calculator above.
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