Question 1

How does joint taxation work in Luxembourg?

Accepted Answer

Tax Class 2 uses income splitting: the combined gross income is divided by two, taxed at the applicable rate, then doubled. This lowers the effective tax rate when partners earn significantly different amounts.

Question 2

Is Tax Class 2 always better for couples in Luxembourg?

Accepted Answer

Not always. Class 2 benefits couples with significantly different incomes most. Use the tax class comparison built into this calculator to compare Class 1, 1a, and 2 side-by-side for your specific salaries.

Question 3

Can unmarried couples use Tax Class 2 in Luxembourg?

Accepted Answer

No. Tax Class 2 is reserved for married couples and registered civil partners (PACS). Non-married partners are each taxed under Class 1, unless one qualifies for Class 1a (single parent or age 65+).

Question 4

What employment types can I mix in the joint calculator?

Accepted Answer

Each partner can be a private-sector employee, self-employed, or employed by an EU institution. EU employees enter the net amount from their payslip because Piggy does not estimate institutional payroll deductions.

Question 5

What is the average household income in Luxembourg?

Accepted Answer

The average net household income in Luxembourg is approximately €5,500–€6,000 per month. The median is lower at around €4,500–€5,000 per month, as high earners push the average upward.

Joint Salary Calculator