Generalized tax relief for workers and pensioners is promised by the CSV-DP government of Luc Frieden.
Indeed, the revision of the income tax scale, with a general reduction of around -6.4% in the tax burden for most taxpayers, aims to favor “the middle classes and in particular taxpayers of tax class 1A”, as the executive has already highlighted. This new measure will come into force on January 1.
The best news is that some people will no longer have to pay tax. This is the case for workers who receive the country’s unskilled minimum wage, which currently stands at 2,570.93 euros (and which will increase by 2.6% from January 1). Starting next year, these taxpayers will be exempt from taxes. “This is a historic step forward for our country,” declared Gilles Roth (CSV), Minister of Finance, during the presentation of the new tax scale.
Single-parent families
Another category of taxpayers will also stop paying taxes from next year: single-parent families included in class 1 who benefit from the single-parent tax credit (CIM) in its entirety.
These single adults with dependent children whose gross annual salary does not exceed 52,400 euros per year and who benefit from the full CIM will now be exempt from the tax contribution.
Example of tax reduction in class 1A with CIM. © PHOTO: Luxembourg Government
These households with a gross annual salary of 50,000 euros will also become creditors of the State, since they will have a negative tax bill of 614 euros, according to the example presented by the Ministry of Finance. In 2023, these same taxpayers paid 2,888 euros in taxes and they will pay 2,179 euros in 2024.
The tax credit for single parents will also increase from next year, from the current 2,505 euros to 3,504 euros. Please note that the single-parent tax credit is requested in the tax return.
This article was originally published on the website Contact.
Adaptation: Simon Martin
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