Is a cross-border worker in Luxembourg taxed in France?

A cross-border worker's salary is in principle taxable in Luxembourg (withholding at source) and declared in France, which eliminates double taxation under the Franco-Luxembourg convention. The teleworking rules set an annual day threshold beyond which part of the income becomes taxable in France. (source: impots.gouv.fr)

What are the Luxembourg tax classes?

Luxembourg applies tax classes (1, 1a, 2) based on the family situation; married non-residents can, under conditions, be treated as residents for tax purposes to benefit from the class 2 rate. (source: guichet.public.lu)

Is there a regime for employees recruited from abroad?

Yes: since 1 January 2025, the impatriate regime provides a 50% exemption of gross annual remuneration, capped at €400,000, for the year of arrival plus eight years, subject to conditions. (source: guichet.public.lu)

Do social contributions differ much?

Yes: Luxembourg employee contributions (health, pension, dependency) are noticeably lower than French contributions. The detail appears in the table above.

What assumptions does this comparison use?

A single filer with no children, standard scales in both countries, without special regimes. The tool lets you adjust the salary and the household configuration.

Tax comparison

🇫🇷France vs 🇱🇺Luxembourg

At €80,000 gross, the net annual salary is €52,707 in France and €53,320 in Luxembourg, a gap of €613 per year. Once each side is put at its own price level, the order reverses: about €53,000 of purchasing power in France against €44,000 in Luxembourg. EXPATRIATION.IO comparison, 2026 tax scales: adjust the gross salary and the household below.

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Expat Package Report

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Comparing taxes: France and Luxembourg

France (country) and Luxembourg (country) have distinct approaches to taxing employment income. On a gross salary of €80,000, the effective total deduction rate is 34.1% in France compared to 33.4% in Luxembourg. That translates to a difference of roughly €613 per year in favor of Luxembourg.

In France, income tax amounts to €10,891 and social contributions add €16,403. In Luxembourg, income tax is €16,437 and social contributions are €10,244.

The net annual take-home is €52,707 in France and €53,320 in Luxembourg. These figures assume a single filer with no children or special deductions. Actual results vary based on household composition, deductions, and specific tax credits available in each jurisdiction.

Equivalent gross and tipping point

At €80,000 gross in France, about €78,800 gross is needed in Luxembourg to reach the same net salary.

That figure answers the same net. For the gross that gives back the same purchasing power, restated at each side's price level, the two answers sit side by side.

Across the €30,000 to €250,000 gross range the ranking of the two nets reverses 2 times, at around €88,000 and €192,000; the table above gives the direction at each level.

These figures use the default profile. The Expat Package Report runs the same calculation on your own two salaries and household, and quantifies the gap in euros.

Detailed comparison at €80,000 gross

	France	Luxembourg
Gross annual salary	€80,000	€80,000
Income tax (national or federal)	€10,891	€16,437
Social contributions	€16,403	€10,244
Total deductions	€27,293	€26,680
Net annual salary	€52,707	€53,320
Net monthly salary	€4,392	€4,443
Effective deduction rate	34.1%	33.4%

Pay compared

On pay itself, the 2022 European Structure of Earnings Survey gives, on one definition for both sides, full-time gross annual earnings averaging €40,603 in France and €73,637 in Luxembourg. The medians, less sensitive to very high salaries, are €33,809 and €54,446. Scope: enterprises with 10 or more employees, public administration excluded. The survey is quadrennial and 2022 is its latest edition.

Breakdown of social contributions

France

CSG, deductible (6.8%)	€5,345
CSG, non-deductible (2.4%)	€1,886
CRDS (0.5%)	€393
Old-age, uncapped (0.4%)	€320
Old-age, capped (6.9%)	€3,316
AGIRC-ARRCO T1 (4.01%)	€1,927
AGIRC-ARRCO T2 (9.72%)	€3,103
AGIRC-ARRCO CET (0.14%)	€112
Total contributions	€16,403

Luxembourg

Health insurance (2.80% + 0.25%)	€2,440
Pension insurance	€6,800
Long-term care (dépendance)	€1,004
Total contributions	€10,244

Examples at several salary levels

Gross (EUR)	Rate France	Net France	Rate Luxembourg	Net Luxembourg
€45,000	27.7%	€32,554	22.6%	€34,815
€80,000	34.1%	€52,707	33.4%	€53,320
€120,000	37.2%	€75,314	38.9%	€73,376
€250,000	45.3%	€136,732	43.3%	€141,737

These figures assume a single filer with no children; the tool above lets you adjust the salary and the household configuration (married, 1 to 3 children).

With a married household and two children, at the same €80,000 gross, the net annual salary is €61,168 in France and €63,141 in Luxembourg, a gap of €1,973 per year.

Special tax regimes

The figures on this page apply the ordinary scale. Where one of the two sides opens a tax regime of its own for arrivals from abroad, it is computed alongside here, without changing the comparison above.

Luxembourg · Impatriate Regime (since 2025)

50% exemption of gross annual remuneration, capped at 400,000 EUR of remuneration (maximum exemption of 200,000 EUR per year), for the year of arrival plus eight years. Income tax only, social contributions unaffected. Replaced the former allowance-based regime on 1 January 2025; prior beneficiaries keep the old rules or can opt into the new regime. The comparison above applies the ordinary scale and does not assume this regime.

Gross (EUR)	Net Luxembourg, ordinary scale	Net under the regime	Difference (signed)
€45,000	€34,815	€38,920	+€4,105
€80,000	€53,320	€67,471	+€14,151
€120,000	€73,376	€98,113	+€24,737
€250,000	€141,737	€196,355	+€54,617

Who this regime is open to

Not a Luxembourg tax resident, not living within 150 km of the border and not subject to Luxembourg income tax on professional income in the previous 5 years. Minimum annual base salary of 75,000 EUR. Recruited from abroad or seconded within a group, with at least 75% of working time on the qualifying activity. Whether a given move qualifies is a question for a tax lawyer, not for this calculator.

Cost of living

Consolidated cost-of-living index (Paris = 100): Paris 100, Luxembourg City 120. This is a rounded editorial benchmark, built from Numbeo readings and official statistics rather than published by them. On a gross salary of €80,000, the net amounts adjusted to this index correspond to a purchasing power on the order of €53,000 for Paris and €44,000 for Luxembourg City, at Paris price levels.

To go further: the cost-of-living comparison and the city budget calculator.

Sources: France: impots.gouv.fr (DGFiP), tax year 2026 · Luxembourg: impotsdirects.public.lu, tax year 2026

This tool provides estimates based on public datasets. It is not the opinion of a tax lawyer. Consult a tax lawyer, a chartered accountant or a licensed financial professional before making relocation or employment decisions.