Which expenses are deductible
The Luxembourg catalogue this calculator uses has seven lines. Five have a field on this page: private pension savings, home savings, insurance premiums, loan interest and charitable donations. The other two, childcare and maintenance payments, are only recognised from transactions and so have no field.
Each line carries its own annual plafond: €3,200 for private pension savings, €3,000 for loan interest, €672 for home savings, €672 for insurance premiums, €5,400 for childcare and €24,000 for maintenance payments. Donations have no fixed plafond in this model.
An amount above the plafond counts only up to the plafond, and the excess counts for nothing. The line's bar then shows full, with no headroom left, which is the sign that one more euro on that line changes nothing about the tax.
The plafonds, line by line
The four capped lines with a field add up to €7,544: €3,200 of private pension savings, €3,000 of loan interest, €672 of home savings and €672 of insurance premiums. Reaching all four is worth €2,942 less tax at a marginal rate of 39%, and €1,509 at 20%.
These plafonds do not depend here on the tax class, the number of children or age. The code flags that as a first-pass simplification, to be checked against the published amounts. They are orders of magnitude, and a real return can carry different figures.
The marginal rate does depend on income and class. On €60,000 it is 39% in classes 1 and 1a and 18% in class 2. The same €3,400 of deductions is then worth €1,326 or €612.
How to use the finder
The income and the tax class do one job: they set the marginal rate, which is what a deducted euro is worth. The five fields below are the amounts paid during the year on each line. The claimable total, the tax saved and the chart are recomputed on every keystroke.
The starting values are an example, not a measurement: €1,200 of private pension savings, €400 of home savings, €300 of insurance premiums and €1,500 of loan interest, on an income of €60,000 in class 1.
All seven settings fit in the page address. The Copy link button returns a URL that reopens exactly the same amounts.
- Annual income and tax class: they set the marginal rate.
- Amounts paid: the year's total on each line, before capping.
- Claimable total: the sum of the lines once each is capped at its plafond.
Reading the result
The big number is the claimable total after capping. The two swatches above the chart carry that total and the headroom left under the plafonds. The three boxes under the chart carry the estimated tax saved, that same headroom, and the marginal rate used.
The saving is valued at the marginal rate: €3,400 at 39% gives €1,326. Running the reduced income back through the full scale gives €1,419 on the same case. The €93 gap is the employment-fund surtax, which follows the base tax at 7% and therefore falls too. Valuing at the marginal rate slightly understates the effect.
The chart splits each line in two: what counts and what is left under the plafond. A short bar with a lot of headroom marks a line where a further payment still counts. A full bar marks the opposite.
Frequently asked questions
Which expenses are tax deductible in Luxembourg?
The catalogue in this calculator holds seven lines: private pension savings, home savings, insurance premiums, loan interest, charitable donations, childcare and maintenance payments. Five of them have a field on this page. Childcare and maintenance payments are only recognised from transactions.
What are the deduction ceilings?
In this model: €3,200 a year for private pension savings, €3,000 for loan interest, €672 for home savings, €672 for insurance premiums, €5,400 for childcare and €24,000 for maintenance payments. Donations have no fixed ceiling. These amounts are approximate and do not vary with the tax class or the number of children.
Can a cross-border worker claim these deductions?
A non-resident reaches the Luxembourg deductions through quasi-resident status, which assumes at least 90% of their income is Luxembourg-sourced. That is the threshold the engine carries. The calculator does not check the condition: it applies the catalogue to the amounts entered, whatever the country of residence.
How much does a deduction save?
As much as the marginal rate applied to the amount that counts. On €60,000 in class 1 the marginal rate is 39%, so €1,000 deducted is worth €390. On the same income in class 2 it drops to 18%, so €180. At €45,000 in class 1 it is 32%.
What supporting documents does the return need?
The calculator asks for none and holds no list of them. It works on annual amounts entered by hand, or taken from transactions when it is filled from real data. The return itself is filed with the Administration des contributions directes, on the basis of the amounts actually paid during the year.
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