On 6 January 2026, the Luxembourg government released draft law No. 8676 introducing a single tax class for income taxation of individuals starting from the 2028 tax year. In line with its 2023-2028 coalition program, the Luxembourg government proposes to reform the tax scale applicable to individual taxpayers.
The new draft law provides for a comprehensive reform 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 collective taxation under a tax scale reflecting the current tax class 2 for a period of twenty-five years.
The draft law also sets out a series of tax measures aimed at supporting families, simplifying procedures, and increasing deduction ceilings to enhance fairness and flexibility.
In this Alert, our Tax Partner, Hugues Hénaff, and our Chief Knowledge Officer, Marie Bentley, outline the key features of the proposed reform.