Headline stats

Government debt
26.5% GDP
2025
EU27 avg: 81.7% GDP (2025)
Govt expenditure
49.1% GDP
2025
Budget deficit
2% GDP
2025
EU27 avg: 3.1% GDP (2025)
Tax revenue
11.6% GDP
2025
Public sector jobs
119k
2024

Tax rates

What Luxembourg takes — statutory rates and effective burden on workers.

Labour tax wedge
33.3% of labour cost
2025
Top income tax rate
42%
2024
Corporate tax rate
24.9%
2024
Standard VAT rate
17%
2024

Labour tax wedge: effective % of gross labour cost (salary + employer contributions) going to income tax and social contributions for a single person at average wage. Source: Eurostat earn_nt_taxrate. Statutory rates: OECD Taxing Wages 2024 / EC Taxation Trends 2024.

Comparative prices

Luxembourg is 32.0% more expensive than the EU average overall (2024). Index: EU27 = 100.

CategoryPrice indexvs EU avg
Overall price level132.0+32.0%
Food & non-alcoholic drinks124.8+24.8%
Housing, utilities & energy178.4+78.4%
Restaurants & hotels123.6+23.6%
Transport96.4-3.6%
Health178.2+78.2%
Education350.5+250.5%
Clothing & footwear109.1+9.1%
Recreation & culture116.8+16.8%
Alcohol & tobacco94.0-6.0%
Household furnishings123.1+23.1%
Communication154.7+54.7%
Miscellaneous145.1+45.1%

Source: Eurostat prc_ppp_ind. EU27_2020 = 100. Green = cheaper than EU average.

Government debt since 2011

YearDebt (% GDP)Change
201118.5—
201220.8+2.3
201322.4+1.6
201421.9-0.5
201521.1-0.8
201619.6-1.5
201721.8+2.2
201820.9-0.9
201922.3+1.4
202024.5+2.2
202124.2-0.3
202224.9+0.7
202324.7-0.2
202426.3+1.6
202526.5+0.2

Data sources

DatasetSourceCoverage
Govt expenditure / debt / deficitEurostat gov_10dd_edpt11995–2025
Tax revenueEurostat gov_10a_taxag1995–2025
Public employment (NACE O-Q)Eurostat nama_10_a64_e1995–2024
Tax breakdown (VAT, income, social)Eurostat gov_10a_taxag2000–2023
Labour tax wedgeEurostat earn_nt_taxrate2000–2023
Statutory tax rates (income, corporate, VAT)OECD / EC Taxation Trends 20242024
Comparative price levels (13 categories)Eurostat prc_ppp_ind1995–2024
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