Class U tax brackets 2028: the full Luxembourg scale

Class U tax brackets (article 118)

Class U is the new "tarif U" in article 118 of the income tax law. It applies to everyone from tax year 2028: singles and single parents automatically, non-residents by default, couples who marry or sign a PACS from 2028, and couples married before 2028 who opt for individual taxation. Each band is taxed only on the part of income that falls inside it.

The last column is the tax from the scale alone at the top of each band, before the employment fund surcharge and before tax credits. The surcharge is 7% of that tax; under the voted text it rises to 9% for income above €150,000 on Class U.

Tarif T scale (article 118bis)

Tarif T, the "tarif transitoire" in new article 118bis, is the successor of today's class 2. The couple's taxable incomes are added together and taxed on the scale below, whose bands are twice as wide as the base scale behind today's class 1. It is available until the end of the 2052 tax year to couples married or in a PACS before 1 January 2028, under the conditions explained in our couples guide. The surcharge is 7%, rising to 9% above €300,000 for the couple.

Worked examples: single taxpayers on Class U

Annual tax for 2028 on taxable income, including the 7% surcharge, before tax credits (for example the employee tax credit) and before any deductions:

The average rate is the tax divided by taxable income. The marginal rate is the scale rate on the next euro earned, before the 7% surcharge.

Band by band: €60,000 on Class U

Worked examples: couples, Tarif T vs Class U

For a couple, Tarif T taxes the combined income, so the split does not matter. Class U taxes each partner separately, so the split matters a lot. Couples without children, 2028 tax including the 7% surcharge, before tax credits:

A single-earner couple on €80,000 pays €8,717 less on Tarif T, while the same income split 50/50 pays €4,810 less on Class U. Where the break-even lies for your own split is what our Class U vs Tarif T guide and the calculator are for.

What these tables leave out

• Status of the law. The scales come from Bill 8676 as adopted by the Chamber of Deputies on 28 October 2026 (first vote: 37 in favour, 11 against, 12 abstentions). We had not seen the law published in the Journal officiel on 31 October 2026.
• Indexation. Under new article 125, the bands are multiplied by 1.1038 after the fourth index tranche counted from 1 January 2028, from the following tax year. The tables show the starting values.
• Credits and deductions. Tax credits, the €5,400 early-childhood allowance (Class U only), other deductions and the ACD's rounding are not included in the examples.
• Taxable income, not salary. The scales apply to adjusted taxable income, which is lower than gross pay.