Tax rate on low wage earners - tax wedge on labour costs in Luxembourg
Luxembourg: Tax rate on low wage earners - tax wedge on labour costs was 33.7 Rate in 2025. ▲ Rising
Latest (2025)
33.7 Rate
Change on year
up 0.6%
World rank
31st
of 44 countries
All-time high
33.7 Rate
in 2025
All-time low
26 Rate
in 2002
Years of data
26
2000–2025
Tax rate on low wage earners - tax wedge on labour costs in Luxembourg, 2000–2025
Source: Eurostat. Measured in Rate.
Analysis
Luxembourg recorded 33.7 Rate for tax rate on low wage earners - tax wedge on labour costs in 2025. That is the highest value across all 26 years on record.
The figure is up 0.6% on the previous year and up 4.0% over ten years.
Over the whole period, tax rate on low wage earners - tax wedge on labour costs in Luxembourg peaked at 33.7 Rate in 2025 and was at its lowest, 26 Rate, in 2002.
Luxembourg ranks 31st of 44 countries on this measure, in the middle of the range.
The long-run direction has been consistently rising across the 26 years of available data.
Tax rate on low wage earners - tax wedge on labour costs in Luxembourg, year by year
| Year | Rate | Change |
|---|---|---|
| 2000 | 29.8 Rate | — |
| 2001 | 28.3 Rate | -5.0% |
| 2002 | 26 Rate | -8.1% |
| 2003 | 26.4 Rate | +1.5% |
| 2004 | 26.7 Rate | +1.1% |
| 2005 | 27.3 Rate | +2.2% |
| 2006 | 27.8 Rate | +1.8% |
| 2007 | 28.5 Rate | +2.5% |
| 2008 | 28.2 Rate | -1.1% |
| 2009 | 28.6 Rate | +1.4% |
| 2010 | 28.8 Rate | +0.7% |
| 2011 | 30.6 Rate | +6.3% |
| 2012 | 30.4 Rate | -0.7% |
| 2013 | 31.2 Rate | +2.6% |
| 2014 | 31.6 Rate | +1.3% |
| 2015 | 32.4 Rate | +2.5% |
| 2016 | 32.5 Rate | +0.3% |
| 2017 | 30.2 Rate | -7.1% |
| 2018 | 30.5 Rate | +1.0% |
| 2019 | 30.7 Rate | +0.7% |
| 2020 | 31.7 Rate | +3.3% |
| 2021 | 31.8 Rate | +0.3% |
| 2022 | 31.7 Rate | -0.3% |
| 2023 | 33.4 Rate | +5.4% |
| 2024 | 33.5 Rate | +0.3% |
| 2025 | 33.7 Rate | +0.6% |
Luxembourg compared with similar countries
- Luxembourg's 33.7 Rate is below the median for Europe & Central Asia, which is 37.25 Rate, 90% of the median. (30 countries reporting)
- Luxembourg's 33.7 Rate is below the median for high income countries, which is 36.4 Rate, 93% of the median. (33 countries reporting)
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 27.76 Rate | 26 Rate | 29.8 Rate | 10 |
| 2010s | 30.89 Rate | 28.8 Rate | 32.5 Rate | 10 |
| 2020s | 32.63 Rate | 31.7 Rate | 33.7 Rate | 6 |
Countries ranked near Luxembourg
More work & labour data for Luxembourg
- Population - Est. & Proj. — Total Population - Both sexes, annual -0.2379 % change on previous year (2100)
- Population - Est. & Proj. — Total Population - Male, annual growth -0.2434 % change on previous year (2100)
- Population - Est. & Proj. — Total Population - Female, annual growth -0.2321 % change on previous year (2100)
- Population - Est. & Proj. — Rural population, annual growth rate -0.8409 % change on previous year (2050)
- Population - Est. & Proj. — Urban population, annual growth rate 0.7733 % change on previous year (2050)
- Population - Est. & Proj. — Urban population 756.65 1000 No (2050)
- Population - Est. & Proj. — Rural population 39.27 1000 No (2050)
- Population - Est. & Proj. — Total Population - Female 369.69 1000 No (2100)
- Population - Est. & Proj. — Total Population - Male 378.3 1000 No (2100)
- Population - Est. & Proj. — Total Population - Both sexes 747.99 1000 No (2100)
Frequently asked questions
- What is tax rate on low wage earners - tax wedge on labour costs in Luxembourg?
- Tax rate on low wage earners - tax wedge on labour costs in Luxembourg was 33.7 Rate in 2025, according to Eurostat.
- What is the highest tax rate on low wage earners - tax wedge on labour costs recorded in Luxembourg?
- The highest recorded value was 33.7 Rate in 2025.
- What is the lowest tax rate on low wage earners - tax wedge on labour costs recorded in Luxembourg?
- The lowest recorded value was 26 Rate in 2002.
- How does Luxembourg rank for tax rate on low wage earners - tax wedge on labour costs?
- Luxembourg ranks 31st out of 44 countries with data for 2025.
- Is tax rate on low wage earners - tax wedge on labour costs rising or falling in Luxembourg?
- Over the last ten years it is up 4.0%. The long-run trend across the full record is rising.
- Where does this Luxembourg data come from?
- The figures come from Eurostat, published as part of Tax rate on low wage earners - tax wedge on labour costs. Statizoid updates them automatically from the source API.
Download this data
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