All single parents in Luxembourg will see a reduction in their tax burden, regardless of their income level, under the government's proposed reform of the tax class system. This is the central promise made by officials as they prepare to overhaul a decades-old tax structure.
On Thursday, the Ministry of Finance published projections highlighting the financial gains for single parents once the new system is introduced. The changes, which are set to come into effect in 2028, will see classes 1, 1a, and 2 replaced by a single tax class known as class U.
According to Finance Minister Gilles Roth, a comparison between the tax years 2026 and 2028 shows that single-parent families will have a systematically lower tax burden under the reformed system, irrespective of their income. This projection includes an increase in the single-parent tax credit, which will rise to €4,008 per year.
Data released by the ministry show that single parents with an adjusted taxable income of up to €90,000 per year (which differs from gross income) will save several hundred euros annually under the new system, after factoring in employment fund contributions and the improved single-parent credit.
For those earning €110,000 or more, the benefit remains positive but narrows to around €35. The full table published by the government can be found here (in French).
| Adjusted taxable income (gross income is therefore higher) | 2026 (class 1a) | 2028 (class U) | Difference in tax burden |
| €50.000 | €1.813 | €1.246 | €-567 |
| €60.000 | €5.958 | €5.419 | €-539 |
| €80.000 | €15.528 | €15.213 | €-315 |
| €100.000 | €25.098 | €25.007 | €-91 |
The reform also affects couples, who will move from class 2 to the new class U and face a new tax schedule. However, a 25-year transition period is planned to ease the shift for these households.
