Responding to a parliamentary question from Diane Adehm (CSV), Pierre Gramegna (DP) explained that the reform part of the coalition agreement of the current government.

“A progressive generalisation, coupled with the introduction of a new tax table, will guarantee a fiscal model which is neutral in relation to the style of life of the individual,” he cited the coalition agreement.

The document further explains that any reform should not discourage one person in a couple from working, which is currently the case. “The introduction of a single fiscal table would avoid changes in tax class which people are currently confronted in relation to their family situation (married, pacsed, divorced, deceased..)” he writes.

Gramegna explained that a working group is in the process of analysing what the reform should look like and it was too early to speculate further.

The announcement comes after a petition calling for Luxembourg to overhaul its tax treatment of individuals garnered over 6,000 signatures, exceeding the 4,500-signature threshold required to request a public debate on the subject.

Income tax is calculated based on incoming and applied on a sliding scale of 0-42%. Currently, single people are placed in class 1 for their taxable personal income while married couples and those in civil partnerships are in class 2. Depending on the earnings, single people can end up paying more in tax.

You can view the income tax differences in this PwC chart.