01
Recipient eligibility
Check the statutory categories or official list before donating.
Luxembourg 2026Official tax source
Calculate the Luxembourg tax deduction for donations
Check the annual threshold, the income-based ceiling and the incremental tax effect of donations to recognised organisations.
Calculate my tax saving- Maximum deduction
- 20% of total net income · maximum €1,000,000; €120 annual minimum
- Potential saving
- Depends on income, donation and the €480 allowance
- Main condition
- Cash donations to organisations recognised by law or approved, supported by a certificate.
- Term / liquidity
- None; the donation is irrevocable
A donation is deductible only if the recipient qualifies and the annual total reaches €120. Keep certificates: payment alone does not establish eligibility.
2026 calculator
Estimate donation tax relief
Eligible annual donations must reach €120 and are capped at 20% of total net income or €1,000,000.
Method and limitations
The engine applies the legal ceiling, calculates the additional reduction in taxable income, then reuses the progressive 2026 scale and employment-fund surcharge. It does not simulate an ACD decision, foreign taxation or future product taxation.
Comparison scope
Verify the organisation rather than compare a product
There is no product to rank. The useful checks are the recipient’s official eligibility and the donation certificate.
No artificial ranking
This is deliberate: the available data is not sufficiently comparable or the taxpayer does not choose the provider directly. The criteria below remain the relevant checks.
Decision
Four checks before deciding
Request a quantified written answer where a product exists. Marketing material does not replace full terms, complete fees or a suitable proposal.
02
Annual threshold
Eligible donations must total at least €120 during the year.
03
Evidence
Keep a certificate stating the recipient, amount and date.
04
Ceiling and carry-forward
An amount exceeding the annual limit may be carried forward for two years under the applicable rules.
Analysis
Who is it for, why use it and what goes wrong?
Potentially suitable if…
- A taxpayer who already wants to support an eligible cause.
- A donor holding the necessary certificates and meeting the annual threshold.
Less suitable if…
- Someone donating only in the hope of recovering the full amount through tax.
- A donation to an unrecognised recipient or without usable evidence.
Common mistakes
- Confusing an income deduction with a euro-for-euro tax credit.
- Donating less than €120 over the entire year.
- Failing to verify the recipient or losing the certificate.
Advantages
- + Clear ceiling rule.
- + Excess may be carried forward for two years.
- + No financial product or contractual fees.
Drawbacks
- − The donation is irrevocable.
- − The tax saving is always smaller than the donation.
- − The €480 allowance may neutralise the incremental effect of a small isolated donation.
Worked example
Example: €1,000 donated with €60,000 total net income
The income-based ceiling is €12,000, so the €1,000 passes that test. If no other actual special expense has used the €480 allowance, the additional reduction in taxable income is €520, not €1,000.
2026 rules
What the calculator includes
- Eligible donations must total at least €120 in the year.
- The deduction is capped at 20% of total net income and €1,000,000 per year.
- An eligible excess may be carried forward to the next two tax years.
- Only recognised or approved beneficiaries qualify.
- The standard €480 special-expense allowance may absorb some or all of the first incremental effect.
Frequently asked questions
FAQ Charitable donations
What is the minimum deductible donation in Luxembourg?
Eligible donations must total at least €120 during the year.
What is the donation deduction ceiling?
The annual limit is the lower of 20% of total net income and €1,000,000.
Does a €100 donation reduce tax?
On its own it does not meet the €120 annual minimum. It can qualify if other eligible donations bring the annual total above the threshold.
Can a donation above the ceiling be carried forward?
The eligible excess may be carried forward for the next two tax years under ACD rules.
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