Luxembourg’s state revenue experienced a significant rise in the first nine months of 2026, reaching €23.9 billion by the end of September. This marks a 9.9% increase compared to the same period last year, driven largely by tax collections. The boost in revenue was mainly attributed to corporate income tax, which saw a 21.4% increase, bringing in €3.3 billion. Additionally, the solidarity tax revenue rose by 9.1% to €610 million, and the newly introduced national Pillar 2 tax contributed €239 million.
Value-added tax (VAT) and other revenue streams also contributed to the increase, with VAT receipts climbing 7.8% to €4.7 billion, and subscription tax revenue growing by 10.5% to €1.1 billion. However, there was a decline in customs and excise revenue, which fell by 3.1% to €1.8 billion during this period.
Despite the strong revenue growth, Luxembourg’s state expenditure reached €24.2 billion by the end of September, increasing by 8.9% from the previous year. The rise in spending was attributed to higher transfers to social security, municipalities, and the European Union budget, as well as increased public investment and employee remuneration.
The disparity between revenue and expenditure resulted in a budget deficit of €339 million for the central government as of September 30, 2026. This shortfall highlights the continued challenge of balancing the country’s budget despite robust revenue increases.