Tax Card

What is a tax card? - A tax card (officially called "fiche de retenue d'impôt" in Luxembourg) is an official document issued by the Luxembourg Inland Revenue (Administration des Contributions Directes - ACD) that specifies the tax rate and deductions to be applied to an employee's salary. This document tells employers exactly how much income tax to withhold from each paycheck based on the employee's tax class, allowances, and specific deductions.

Why is a tax card important? - The tax card ensures that the correct amount of income tax is deducted from your salary each month. Without a valid tax card, employers are legally required to apply the highest possible tax rate (Class 1 with no deductions, minimum 33%), which results in significantly higher tax withholding and a much lower net salary until the situation is corrected.

How do employees receive their tax card in Luxembourg? - For new employees starting work in Luxembourg, the tax card is automatically issued by the ACD within approximately 30 working days after the employer registers them with the CCSS. Since May 2021, Luxembourg has introduced electronic multi-annual tax cards that remain valid until personal circumstances change (such as marital status, address, or tax class). Employees can access their tax card digitally through MyGuichet.lu.

Do employees need to give their tax card to their employer? - Since 1 January 2022, employees are no longer required to physically submit their tax card to their employer. The ACD provides an electronic copy directly to the employer through MyGuichet.lu. However, employees remain responsible for ensuring that a valid tax card exists for their employment.

What information is included on a Luxembourg tax card? - A tax card typically includes:

How do employers access employee tax cards? - Employers must access their employees' tax cards through MyGuichet.lu using their certified business eSpace. Since 1 January 2022, consulting tax cards via MyGuichet.lu is mandatory for employers to determine the correct withholding tax and tax credits. Employers need to request an access token from the ACD and activate it within 2 months to view tax cards electronically.

What are the Luxembourg-specific tax classes on the tax card? - Luxembourg uses three tax classes that determine the tax rate:

What happens if changes occur during the year? - When personal circumstances change (marriage, divorce, birth of a child, change of address), the ACD automatically issues an updated tax card. For resident employees, changes to address or marital status are updated automatically. The new tax class is applied retroactively from the beginning of the tax year, with adjustments made through the annual tax return or tax settlement.

Are there special rules for cross-border workers? - Yes, non-resident employees (frontaliers) working in Luxembourg receive their tax card from the RTS tax office for non-residents. Non-resident married couples are automatically placed in tax class 1, but can request to be taxed according to Class 2 rates if at least 90% of the household's income is taxable in Luxembourg and they apply for assimilation to resident status.

What about temporary agency workers and self-employed individuals? - Since 1 January 2022, temporary agency workers earning a gross hourly wage below €25 do not need a tax card and are subject to a flat 7.5% withholding tax. Those earning above €25 per hour must request a tax card using form 162 F. Self-employed individuals also receive tax cards based on estimated income and should regularly review and adjust these estimates with the ACD.

What should employees do if they haven't received their tax card? - If you haven't received your tax card within 30 working days of starting employment, contact the competent RTS office based on your commune of residence and inform your employer that the application is pending. You can also check the status and download your tax card through your private eSpace on MyGuichet.lu.