Choosing between joint taxation or individual taxation as a married taxpayer
Last update
Since the tax year 2018 (1 January 2018), certain married taxpayers have the possibility to choose between joint or individual taxation.
Who is concerned
Married taxpayers can choose between joint or individual taxation, whether they are resident or non-resident, provided they met the conditions for tax assimilation.
Prerequisites
The spouses must submit and sign a joint application in order to choose joint or individual taxation.
Married non-resident taxpayers must have chosen to be treated as Luxembourg residents for tax purposes (tax assimilation) in accordance with Article 157ter of the tax law on income in Luxembourg and fully meet all related legal and regulatory requirements.
Deadlines
For any given fiscal year N, a choice made after 31 December N + 1 is no longer taken into account and, beyond that date, the choice made before that date is irrevocable.
Example: for the tax year 2024, the cut-off date is 31 December 2025.
Note that choices submitted via MyGuichet.lu are given priority by the Luxembourg Inland Revenue (Administration des contributions directes - ACD).
How to proceed
Principles
- Resident taxpayers
- Non-resident taxpayers
Since 1 January 2018, resident taxpayers who are married or who are getting married in the course of the year, will have the choice between:
- joint taxation, on the basis of tax class 2;
- pure individual taxation, on the basis of tax class 1 for each spouse;
- individual taxation with reallocation, based on tax class 1 for each spouse, with a common rate recorded on each of the spouses' tax card.
With respect to individual taxation, when there are children in the household, tax class 1 does not change, but the other advantages arising from the presence of children in the household are taken into account in accordance with the conditions linked to the type of taxation chosen.
Since 1 January 2018, non-resident married taxpayers who fail to submit a joint decision are assigned tax class 1 and will be taxed on their Luxembourgish income only.
However, if they meet the conditions and choose to be treated as Luxembourg resident taxpayers, they will be able to choose between:
- joint taxation, on the basis of tax class 2;
- pure individual taxation, on the basis of tax class 1 for each spouse;
- individual taxation with reallocation, on the basis of tax class 1 for each spouse.
The choice between joint taxation, pure individual taxation or individual taxation with reallocation of income results in a tax rate that is recorded on each spouse's tax card (depending on the case, this rate can be common to both spouses or be individual).
With respect to individual taxation, when there are children in the household, tax class 1 does not change, but the other advantages arising from the presence of children in the household are taken into account in accordance with the conditions linked to the type of taxation chosen.
Taxpayers who have chosen to be treated as resident taxpayers are required to file a tax return.
How to notify the authorities of your choice
Choosing the type of taxation can be made , within the set deadlines:
- via an online procedure without authentication through LuxTrust or eID (request for individual taxation / RTS rate), which is available on MyGuichet.lu and recommended by the Luxembourg Inland Revenue (ACD);
- by sending a specific application to the relevant department.
If no choice is made in the course of tax year N, the taxpayer can still make their choice after the end of the tax year at the time of filing their tax return. The deadline for making the choice is 31 December of the year N+1.
If the taxpayers fail to make a choice, they will automatically be allocated tax class 1 and are taxed on their Luxembourg-source income only.
Please note that a choice submitted via the online procedure will be given priority by the Luxembourg Inland Revenue (ACD).
Online services and forms
Who to contact
Luxembourg Inland Revenue (ACD) Contact Centre
- Address:
- 33, rue de Gasperich L-5826 Hesperange Luxembourg
- Phone:
-
(+352) 247 53 000
'Electronic assistant’ helpline available Monday to Friday from 7:45 to 17:00
Luxembourg Inland Revenue (ACD)
Luxembourg Inland Revenue (ACD)
- Address:
- 33, rue de Gasperich L-5826 Hesperange Luxembourg
Related procedures and links
Procedures
Links
Further information
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impotsdirects.public.lu
Site Internet de l’Administration des contributions directes (ACD)
-
Mariage
sur le site de l’Administration des contributions directes (ACD)
Legal references
concernant l’impôt sur le revenu
