Luxembourg: Singles will pay less tax in 2028

Announced for years, the major tax reform is starting to materialize. The bill will be tabled in 2026, for an entry into force hoped for in 2028, announced on Tuesday Gilles Roth (CSV), Minister of Finance. The great principle is the individualization of taxation. This would no longer be calculated according to cleaning, with differences according to the status (single, married, PACS), he said before the deputies of the Finance Commission.

The Minister assures that the reform would not lose anything in taxpayers. “Singles should be the winners,” according to deputy André Bauler (DP), vice-president of the committee. A single person at 50,000 euros per year would see their taxation drop from 5,572 to 3,071 euros, depending on the calculations by Gilles Roth, a gain of 2,501 euros over the year.

The unique taxation class will be based on the current class 1A, where single -parent families and widowers are in particular. Married couples before the reform may benefit, if they wish, from the current system during the transitional period of twenty years. “Current abatements, notably concerning children and real estate loans, will not change,” according to André Bauler. Critics have been issued by the ADR on the disparity linked to individualization: two couples with identical total income would be taxed differently depending on the distribution of the sum between the two adults.

The authorities estimate the cost of the reform at 800 or even 900 million euros per year. This explains that she was late. Planned under the previous legislature, under the aegis of former Minister of Finance Pierre Gramegna, it had been postponed because of successive crises (COVVI, War in Ukraine, Inflation), which had engaged in public accounts.