Luxembourg’s state revenue witnessed a significant increase by the end of September 2026, reaching €23.9 billion, marking a 9.9% rise compared to the same period in the previous year. This growth was primarily fueled by a surge in tax collections, with corporate income tax revenues alone climbing to €3.3 billion, up by €582 million or 21.4% year-on-year. Additionally, the solidarity tax contributed €610 million, a 9.1% increase, while the newly introduced national Pillar 2 tax brought in €239 million.
Among other revenue streams, VAT receipts rose to €4.7 billion, reflecting a 7.8% increase, and subscription tax revenue grew by 10.5% to €1.1 billion. However, not all areas experienced growth; customs and excise revenues saw a decline of 3.1%, amounting to €1.8 billion.
Despite the robust revenue growth, Luxembourg’s state expenditure also escalated, standing at €24.2 billion by the end of the third quarter. This represents an increase of €1.98 billion or 8.9% from the previous year, driven by higher allocations to social security, municipalities, and the European Union budget, alongside increased public investment and employee remuneration.
The imbalance between revenue and expenditure resulted in a budget deficit of €339 million as of September 30, 2026. While the state managed to bolster its income significantly, the challenge of maintaining a balance between income and spending persists, highlighting the need for strategic financial management to address the shortfall.