Taxable (Imposable)

Updated on 14/07/2026

Definition

‘Taxable (imposable)’ in Luxembourg refers to income or assets that are subject to taxation under the laws of a particular jurisdiction. In Luxembourg, this term indicates the portion of income or wealth that can be taxed by the government. Understanding what is considered taxable is essential for individuals and businesses to accurately calculate their tax obligations.

Frequently asked questions

How is taxable income determined?
Taxable income is calculated by taking total income and subtracting allowable deductions, exemptions, and non-taxable income. The remaining amount is considered taxable and is subject to taxation.
Are all types of income taxable?
Not all income is taxable. Certain types of income, such as some social security benefits, gifts, and inheritances, may be exempt from taxes or taxed differently. In Luxembourg, specific exemptions and deductions apply.
What is the difference between gross income and taxable income?
  • Gross income: The total income earned before any deductions or taxes.
  • Taxable income: The income remaining after deductions and exemptions have been applied, which is subject to taxation.
Can I reduce my taxable income?
Yes, you can reduce your taxable income by taking advantage of various deductions and credits allowed under Luxembourg tax law, such as expenses for business, contributions to pension plans, and allowances for dependents.
What counts as taxable income (revenu imposable) in Luxembourg?
In Luxembourg, taxable income includes various sources such as salaries, wages, self-employment income, rental income, dividends, and interest. Specific deductions, like social security contributions and professional expenses, are subtracted from gross income to determine taxable income.
Are there deductions and exemptions in Luxembourg?
Luxembourg tax law allows for certain deductions to reduce taxable income. Common deductions include costs related to work (such as transportation), contributions to health and pension plans, and expenses for childcare.
What is the ‘progressive tax system’?
Luxembourg employs a progressive tax system, meaning that higher levels of taxable income are taxed at higher rates. Understanding what constitutes imposable income helps individuals and businesses determine their tax liability effectively.
Synonyms
ssessable taxed

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