On 28 October 2026, the law introducing a single tax class for income taxation of individuals was adopted by the Luxembourg Parliament.
The new law provides for a comprehensive reform of the taxation of individuals establishing a framework based on individual taxation and neutrality with respect to civil status. The single tax class intends to replace the three tax classes currently in force, with a transitional period allowing married couples and registered partners to continue to apply the collective taxation under a tax scale reflecting the current tax class 2 for a period of twenty-five years.
The new single tax class will be applicable starting from the 2028 tax year.
In this ATOZ Alert, our Tax Partner, Christina Leomy-Voigt, and Chief Knowledge Officer, Marie Bentley, outline the key features of the law.