The forfait kilométrique, unit by unit
The home-to-work trip is converted into distance units, one unit per kilometre. The first four units do not count. Each deductible unit is worth €99 a year. The count stops at the thirtieth unit: beyond it, the deduction no longer moves.
Over 25 km the calculation keeps 21 deductible units, so €2,079 for the year. Over 10 km it keeps 6, so €594. From 30 km on, the deduction is €2,574, which is 26 units at €99, and it stays there for 40 km as much as for 60 km. Under 5 km it is nil.
The amount is a deduction from taxable income, not a refund. It comes off the income before the barème is applied, so what it is worth depends on the marginal rate of whoever claims it.
Cross-border workers and telework days
A salary paid by a Luxembourg employer is taxed in Luxembourg, whether the employee lives in Luxembourg, Belgium or France. The forfait follows the same scope: it reads the declared distance and does not distinguish the country it starts from. For a non-resident, access to Luxembourg deductions runs through the 90% rule on Luxembourg-sourced income, the quasi-résident status.
Telework, by contrast, depends on the country of residence. The model keeps a tolerance of 34 days a year for a French or Belgian resident: beyond that, the share of salary matching those days can revert to the country of residence. For a Luxembourg resident no cross-border limit applies, and the box says so.
A second threshold follows a different logic. Past 50% of working time spent in the country of residence, that country’s social-security regime becomes the applicable one. The code carries an explicit note on both thresholds: they move with bilateral agreements and are to be re-checked each year.
How to use the calculator
Five fields, only one of which decides the deduction. The distance gives the amount. The annual income and the tax class only value it at the marginal rate. The country of residence and the telework days feed the days-left counter, and never touch the amount.
All five parameters fit in the page address. The "Copy link" button gives a URL that reopens the same situation, distance, income, class, residence and days included.
- Home-to-work distance: 0 to 200 km, one distance unit per kilometre.
- Gross annual income and tax class: they set the marginal rate, not the deduction.
- Telework days: compared against the 34-day tolerance for a French or Belgian residence.
Reading the result
The big figure is the annual deduction. The curve shows its staircase across the whole distance scale: flat up to 4 km, rising by €99 per kilometre after that, flat again from 30 km on. That shape, rather than an average, is why a 40 km trip is worth no more than a 30 km one.
The four boxes under the curve break down the rest. The deductible units are the number that multiplies the €99. The marginal rate comes from the income and the class. The estimated tax saved is the product of the two: €2,079 is worth €811 at 39%, €624 at 30% and €416 at 20%.
The real gap is slightly wider than that product. On a gross annual income of €60,000 in class 1, the value this page’s own field carries, taking €2,079 off the taxable income brings the estimated tax down by €876 rather than €811. Most of the difference, €57, is the employment-fund contribution, which follows the base tax at 7%; the rest comes from rounding the income down to a multiple of €50.
Frequently asked questions
How is the Luxembourg commuting deduction calculated?
The home-to-work distance is converted into distance units, one per kilometre. The first four units do not count, each deductible unit is worth €99 a year, and the count stops at the thirtieth. Over 25 km that gives 21 deductible units and €2,079 of deduction for the year.
At what distance does the deduction stop rising?
At 30 km. The forfait counts at most 30 units, 4 of which are not deductible, so 26 units at €99 and €2,574 a year. A 35, 40 or 60 km trip gives the same amount as a 30 km one. At the other end of the scale, a trip of 4 km or less gives nothing.
Can a cross-border worker claim the commuting deduction?
A salary paid by a Luxembourg employer is taxed in Luxembourg, whichever of Luxembourg, Belgium or France the employee lives in. The forfait is computed on the declared distance and does not distinguish that country. For a non-resident, access to Luxembourg deductions depends on the 90% rule: at least 90% of income sourced in Luxembourg opens quasi-résident status.
How many telework days can a cross-border worker take?
The model keeps a tolerance of 34 days a year for a French or Belgian residence. Beyond it, the share of salary matching those days can be taken back by the country of residence. A second threshold, at 50% of working time spent in the country of residence, shifts social-security affiliation. Both depend on bilateral agreements that change from year to year.
What is the deduction worth in tax?
A deduction comes off taxable income, so it is worth its amount multiplied by the marginal rate. The €2,079 of a 25 km trip is worth €811 at 39%, €624 at 30% and €416 at 20%. The real gap is slightly wider: on a gross annual income of €60,000 in class 1 the estimated tax falls by €876, mostly because the employment-fund contribution follows the base tax at 7%.
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