<\/p>\n\n\n\n
A new progressive tax scale<\/h2>\n\n\n\n
The bill proposes a single progressive tax scale applicable to all taxpayers, featuring a simplified structure with 10 brackets instead of the current 23, and a fully tax\u2011exempt first bracket up to \u20ac26,650<\/strong>.<\/p>\n\n\n\n <\/p>\n\n\n\n As of 2028, the first \u20ac26,650 of income will no longer be taxed, compared with \u20ac13,230 today. This automatically reduces the amount of tax due for all taxpayers and is one of the most significant measures of the reform.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n According to the Minister for Finance, the new tax scale will be more favourable for all taxpayers currently in Tax Classes 1 and 1a, and likewise for around 85% of those taxed under Class 2.<\/p>\n\n\n\n Alongside the new tax scale and the single class, the reform introduces or strengthens several allowances and tax credits, particularly those supporting families with young children. An overview of the measures included in the bill currently under discussion is provided below.<\/p>\n\n\n\n A new annual tax allowance of \u20ac5,400<\/strong> is introduced for each child aged 0 to 3, to take better account of early childhood costs. If the child is raised by a single parent, that parent receives the full allowance. For couples, the allowance is shared equally, with each parent able to deduct 50% of the amount.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n The Cr\u00e9dit d’Imp\u00f4t Monoparental (CIM) [single\u2011parent tax credit] will be increased from \u20ac3,504 to \u20ac4,008<\/strong> per year, thereby strengthening support for single\u2011parent families.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n The reform also provides for higher ceilings on several deductible expenses, reducing taxable income and generating additional net savings for most eligible taxpayers.<\/p>\n\n\n\n The following are affected in particular:<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n The new single tax class will apply automatically as of 1 January 2028 to all taxpayers currently in Classes 1 or 1a, as well as to couples marrying or entering into a civil partnership after that date.<\/p>\n\n\n\n Couples married or partnered before 1 January 2028 may continue to benefit from the former Class 2 tax scale during a transitional period of up to 25 years<\/strong> (i.e., until the end of 2052), unless they voluntarily opt for the new single scale.<\/p>\n\n\n\n Another change: for couples who retain Class 2 during the transitional period, in the event of death or divorce, the class will now be maintained for 5 years (instead of the current 3).<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n The 2028 tax reform will bring significant changes to the calculation of income tax, with direct effects on the payslips and therefore on the purchasing power of employees.<\/p>\n\n\n\n Although the bill must still complete the legislative process, its main features are now known, so employers and employees can anticipate the likely impacts.<\/p>\n\n\n\n We will continue to monitor developments closely and will inform you in due course of the practical arrangements, so that you can approach these changes with confidence and calm.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Luxembourg is preparing a major tax reform for 2028 that will significantly reshape personal income taxation. With the introduction of a single tax class, a simplified tax scale and measures supporting purchasing power, these changes will directly impact payroll and HR practices. Discover the key points to anticipate now.<\/p>\n","protected":false},"author":3,"featured_media":7243,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":"","_tec_slr_enabled":"","_tec_slr_layout":""},"categories":[44],"tags":[73,74],"class_list":["post-7246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-fiscalite-en","tag-taxation"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/securex.lu\/wp-content\/uploads\/2026\/01\/legal-news-reforme-impots-2028-en-1-e1769092037958-1024x633.jpg\")
<\/figure>\n\n\n\nImportant accompanying measures<\/h2>\n\n\n\n
\u201cEarly childhood\u201d allowance<\/h3>\n\n\n\n
Single\u2011parent tax credit<\/h3>\n\n\n\n
Increases of various deductions <\/h3>\n\n\n\n
\n
Entry into force and transitional period <\/h2>\n\n\n\n
Conclusion<\/h2>\n\n\n\n