EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Austria vs Luxembourg: taxes, salary and cost of living
For someone shortlisting Austria and Luxembourg, headline tax rates tell only part of the story. The monthly household budget produces a more useful comparison.
Austria vs Luxembourg at a glance
| Indicator | Austria | Luxembourg |
|---|---|---|
| Standard VAT | 20% | 17% |
| Income tax | 0-55% | 0-42% |
| Social contributions | 18.12% | 24.4% |
| Tax burden | 47.2% | 38.4% |
| Average monthly salary | 4,950 € gross/month | €6,900 |
| Studio rent | €760 | €1,650 |
| Monthly food estimate | €330 | €420 |
| Gasoline | 1.63 €/L | 1.52 €/L |
| Electricity | 0.28 €/kWh | 0.21 €/kWh |
How far does the local salary go?
The salary records for Austria and Luxembourg are not directly numeric in both cases. A responsible comparison therefore avoids inventing a salary gap and treats the displayed labels as source notes to verify.
What recurring living costs reveal
Austria has the lower listed studio rent by €890, a 53.9% difference relative to the higher rent. Austria sits 20 of 37 and Luxembourg 36 of 37 in the available low-to-high rent ranking. Austria also has the lower food estimate, so the housing result is reinforced by groceries.
A simplified salary-minus-rent-and-food remainder cannot be calculated reliably for both Austria and Luxembourg because at least one component is non-numeric. The interactive calculator should be used only after verifying those inputs.
Tax profile for employees
Luxembourg has the lower listed tax burden by 8.8 percentage points. Standard VAT is 20% in Austria versus 17% in Luxembourg. Allowances, tax brackets and employment status can reverse a headline comparison.
Fuel-price impact
Luxembourg has the lower listed gasoline price by €0.11 per litre. For a driver buying 50 litres a month, that headline difference is about €5.5 monthly, before insurance, parking and road charges.
The answer depends on your profile
The better choice between Austria and Luxembourg changes with the user: salary-led relocation favours the stronger income-to-cost balance, budget-led relocation favours recurring expenses, and business decisions require separate legal and corporate-tax analysis.
Final view: Austria or Luxembourg?
The available headline indicators do not produce a clear overall winner between Austria and Luxembourg. Your choice should depend on salary, housing and tax priorities.
Sources and data references
- PwC standard VAT rates
- PwC personal income tax rates
- PwC corporate income tax rates
- EuroCosts data scope and generation process
Explore Austria comparisons · Explore Luxembourg comparisons