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What's the tax scale on income?

Verified 07 avril 2022 - Legal and Administrative Information Directorate (Prime Minister)

The scale is used to calculate tax.

It has several slices according to family quotient.

2021 Revenue Progressive Scale

Slices

Tax rate to be applied on the corresponding tranche

(or marginal tax bracket)

Up to €10,225

0

From €10,226 to  €26,070

11%

From  €26,071 to  €74,545

30%

From  €74,546 to €160,336

41%

More than €160,336

45%

Example :

For single (single unit household) with taxable net income of €30,000, without any reduction or deduction.

Its family quotient is €30,000.

For the calculation of his tax:

  • Up to €10,225 : 0
  • From €10,226 to  €26,070 : (€26,070 - €10,225) 11% = €15,845 × 11% = €1,742.95
  • From €26,071 to €30,000 : (€30,000 - €26,070) x 30% = €3,930 × 30% = €1,179

The marginal tax rate (MTR) for this single person is 30%, because its family quotient puts it in this bracket. But not all income is taxed on 30%.

Its gross tax is: €0 + €1,742.95 + €1,179 = €2,921.95.

This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 1 since it is a single.

Its gross tax will therefore be €2,921.95.

This taxpayer's marginal tax rate (MTR) is 30%, because its family quotient puts it in this bracket. But not all income is taxed on 30%.

Example :

For married or married couple without children (2 unit household) with taxable net income of €60,000.

Its family quotient is €60,000 : 2 = €30,000.

For the calculation of his tax:

  • Up to €10,225 : 0
  • From €10,226 to   €26,070 : (€26,070 - €10,225) 11% = €15,845 × 11% = €1,742.95
  • From €26,071 to €30,000 : (€30,000 - €26,070) x 30% = €3,930 × 30% = €1,179

The gross tax of each member of the couple is: €0 + €1,742.95 + €1,179 = €2,921.95.

This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 2 since it is a married or married couple.

The couple will therefore have to pay a €2,921.95 × 2either €5,843.90.

The marginal tax rate (MTR) for this couple is 30%, because its family quotient puts it in this bracket. But not all income is taxed on 30%.

Example :

For a married or married couple with 2 children (3 units, 1 share for each parent and 1 half share for each child) with a taxable net income of €60,000.

Its family quotient is €60,000 : 3 = €20,000.

For the calculation of his tax:

  • Up to €10,225 : 0
  • From €10,226 to €20,000 : (€20,000 - €10,225) x 11% = €9,775× 11% = €1,075.25

This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 3 since it is a married or married couple with 2 children.

The gross family tax is: €1,075.25 x 3either €3,225.75

The marginal tax rate (MTR) for this family is 11%, because its family quotient puts it in this bracket. But not all income is taxed on 11%.

Example :

For one isolated parent with 2 children (2.5 units, 1 share for the parent, 1 half share for each child and 1 additional half share as a single parent) with a taxable net income of €30,000.

Its family quotient is €30,000 : 2.5 = €12 000.

  • Up to €10,225 : 0
  • From €10,226 to  €12 000 : (€12 000 - €10,225) x 11% = €1,775 x 11% = €195.25

This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 2.5 since it is an isolated parent with 2 children.

The gross family tax is: €195.25 x 2.5either €488.12.

The marginal tax rate (MTR) for this family is 11%, because its family quotient puts it in this bracket. But not all income is taxed on 11%.

Attention : the tax benefit is divided by two in the case of alternate residence.

  Warning : the scale is only one element of the income tax calculation. You can estimate your tax liability.