Income tax is calculated in Luxembourg on a sliding scale of 0-42%, depending on income
It may be time for Luxembourg’s parliament to overhaul its tax treatment of single people after over 6,000 people backed a national petition.
Petition 1188 closes on 30 April but, by 16 April, it had far and away exceeded the 4,500-signature threshold required to request a public debate on the topic.
“The purpose of this petition is to reduce taxes for singles. We are one of the countries in Europe where singles pay the most taxes,” Sartori Giancarlo, who submitted the petition back in January 2019, wrote in the supporting paperwork.
How much do singles pay?
Income tax is calculated in Luxembourg on a sliding scale of 0-42%, depending on income.
Currently single people are placed in class 1 for their taxable personal income. Meanwhile married people and those in a civil partnership are placed in class 2.
At the lowest end, class 1 earners on a taxable salaried income of €20,000 pay up to €921 while those in class 2 pay nothing. The difference between the classes doubles as the taxable salaried income rises to €77,400, as this chart from PwC shows.
What does the petition suggest?
The petition author says he seeks to find a “more equitable balance between a married person and a single person”. He suggests placing married and single people in the same class 2 tax bracket.