Freelancer vs employee take-home in Luxembourg on €20,000 (2026)
On a gross of €20,000 in Luxembourg, a employee keeps the most — €17,136 net, €2,090 more than the next-best option. Here is the full breakdown at 2026 rates.
| Setup | Net / year | Effective rate |
|---|---|---|
| Employee | €17,136 | 14% |
| Freelancer | €15,046 | 25% |
| Company | €12,942 | 35% |
Other incomes in Luxembourg
Same income, other countries
Rates: Luxembourg 2026.1-verified, 2026. Income tax uses the enacted ACD 23-tranche barème (class 1; the 2025 scale carried into 2026 unchanged). Tax class 1a is treated as class 1; the company path omits the dividend 50% re-inclusion (pure 15% withholding). Social security (incl. the 2026 pension rate rise to 17%) and class-2 splitting are modelled; the contributory ceiling tracks the 01.06.2026 index revision. Figures are estimates from a deterministic engine — not tax advice.