If you're starting a job, running a small business, or freelancing in Luxembourg, you’ll need to understand how the Luxembourg tax system works. One important document is the tax card. This card helps decide how much tax should be taken from your salary or business income. For 2025, knowing how your tax card works will help you plan your money better and avoid mistakes.
What is a tax card in Luxembourg?
It takes into account your tax class, any allowances, and specific deductions, so that the amount of income tax withheld from your salary or your business income is accurate. Both employees and self-employed individuals need a tax card to manage their tax obligations correctly.
Getting and managing your Luxembourg tax card
First tax card for new residents and workers
For most new residents or individuals starting their first job in Luxembourg, their initial tax card is issued automatically by the Luxembourg Inland Revenue (Administration des Contributions Directes, or ACD). This happens when either your employer declares your employment or, for self-employed individuals, after you register your business activity. You'll need your national identification number (known as a "matricule", more on this later) to start this process. While the timeline can vary, you should generally expect to get your physical tax card within a few weeks of your employment or registration.
Accessing your tax card online
You can find your tax card information online through MyGuichet.lu — the official online portal for administrative procedures in Luxembourg, including those related to taxation. Register for an account (usually using a LuxTrust product such as a Smartcard, USB stick, or Mobile app), then go to the tax section to find and download your current tax card.
Dealing with multiple employers or activities (second tax card)
“What is a second tax card in Luxembourg?” you may ask. If someone has more than one employer or combines employed work with self-employed activities in Luxembourg, they will be issued a "secondary" tax card in addition to their "main" tax card.
The difference is that the income received under a secondary tax card is subject to a higher withholding tax rate, because the primary tax card applies your full tax class benefits and allowances, and the secondary card accounts for the additional income without recalculating those primary benefits. So if you have multiple income sources, be aware of the second tax card to manage your expectations regarding net income.
You can avoid delays, errors, and high withholding rates by letting Easybiz.lu guide you through Luxembourg’s administrative maze.
Understanding tax classes and how to change them
Your tax class plays an important role in determining the amount of income tax withheld from your earnings. Knowing your class and how to change tax class in Luxembourg when your situation evolves is key for accurate taxation.
Overview of Luxembourg tax classes
Luxembourg's tax system categorises taxpayers into different classes based on their personal and family situation:
- Class 1. This class applies to individuals who do not fall into any other specific category.
- Class 1A. This class is for individuals with dependent children or those over 65 years of age. It offers slightly more favourable tax conditions than Class 1.
- Class 2. This class is designed for married couples or registered partners who are jointly taxed. This class often benefits from splitting income for tax purposes, which can potentially lead to a lower overall tax burden.
Each class has specific tax numbers that directly impact your final tax liability.
How to change your tax class in Luxembourg
When life situation changes, you might need to know how to change tax class due to events such as marriage, divorce, the birth of a child, or a change in your residency status. If you need to request a change, submit a formal application to the Luxembourg Inland Revenue (ACD) using Form 164 NR. This form allows you to declare changes in your situation affecting your tax class. Don’t forget to provide all required supporting documentation (e.g., marriage certificate, birth certificate) with your application. Be aware of the deadlines, as the change in information provided later in the year might only take effect in the following tax year. Refer to the official Guichet.public portal for more information.
The Luxembourg tax number (matricule)
Luxembourg tax number (matricule) is a bit broader concept compared to the tax card, and has a 13-digit identification number assigned by the Centre Commun de la Sécurité Sociale (CCSS) upon first registration of an individual in Luxembourg's social security system. The matricule serves as the primary identifier for the state. You can find your matricule on official documents from the CCSS or your pay slips.
Common tax card issues and solutions for 2025
You might encounter issues with your tax card along the way even when you think you know it all. Many of these concerns are frequently discussed in online forums.
- ⚠️ Incorrect tax class. If you notice that your tax class is not correct (for example, you are still listed as single after marriage), follow the steps outlined above to apply for a change using Form 164 NR.
- ⚠️ Not receiving a tax card. If you haven't received your tax card within 30 days after starting employment or registering your business, contact your employer's HR department or reach out directly to the Luxembourg Inland Revenue (ACD).
- ⚠️ Lost or damaged the tax card. You can request a duplicate from the ACD if needed, although you can still access it online.
- ⚠️ Freelancers and new founders. For self-employed individuals, your tax card might initially be based on estimated income. You should regularly review and adjust these estimates with the ACD to prevent under- or overpayment of taxes throughout the year.
If you need help managing your tax card or freelance setup, reach out to Easybiz.lu for help with simplified tax registration, class updates, and administrative filing.
In conclusion, understanding and proactively managing your tax card in Luxembourg is a cornerstone of navigating the Luxembourg tax system effectively. From ensuring correct tax deductions to adapting to life changes, being informed about your tax card empowers you to manage your finances more efficiently. For complex situations or personalised advice, always consider consulting with a tax professional.
