A plain-English guide to Luxembourg's income tax classes 1, 1a and 2 — who is in each, why class 2 saves married and partnered couples money through income splitting, how to change class after marriage or PACS, how cross-border workers are treated, and what Bill 8676's single tax class would change from 2028.
Longwy and the Meurthe-et-Moselle department want Luxembourg to help finance the public services strained by tens of thousands of daily commuters, and a French interministerial delegate to negotiate it. Luxembourg insists it already co-finances cross-border infrastructure and prefers projects to permanent payments — even as it pays Belgian communes nearly €48 million a year.
French commuters are driving almost all of Luxembourg's cross-border hiring while German numbers slip, reshaping the workforce that fills nearly half the Grand Duchy's jobs.