Your tax class depends on your family situation.
– Married couples are taxed together in class 2 by default. Since 2018 they can instead ask for individual taxation.
– A parent who is not in class 2 can, on request, get the tax reduction for a new child and move to class 1a. Single parents can also have the single-parent tax credit (CIM) entered on their tax card.
The tax reduction for children is now paid with the family allowance from the CAE. If a child in your household gets neither, for example an adult child under 21 who is not studying, you can claim tax relief instead.
Childcare costs count as extraordinary expenses, on your tax card or claimed afterwards: see [which childcare counts](https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/beneficier-abattements.html).
Leave payments: the parental leave allowance is taxed like a salary, with the CAE shown as an employer on your tax card.
Why some couples owe tax at year end: the main tax card goes to the highest, most stable income, and other incomes, such as a spouse’s salary, are taxed on additional cards at a fixed rate. The difference is settled the next year through your tax return or annual adjustment. Married couples can instead use an estimated rate from an online simulation.
Changing from 2028: bill 8676 passed its first vote on 28 October 2026 and is final once the second vote is waived and the law is published. As voted, from the 2028 tax year:
– One tax scale replaces classes 1, 1a and 2. Couples who marry or register a partnership from 2028 are taxed individually.
– Couples married or registered before 1 January 2028 can keep joint taxation at the class 2 rate until 2052. Married couples keep it automatically, registered partners must ask every year, and a switch to individual taxation is final.
– Single parents keep a single-parent tax credit (CIM) of up to €4,008 a year, lower for higher incomes.
– Parents taxed individually get a new tax allowance of €5,400 a year per child under 3, split between parents who live together.