111bis calculator: what to pay in before 31 December

Why 31 December matters

Payments into a pension-savings contract (article 111bis) and article 111 insurance premiums are deducted, as special expenses, from the year in which they are paid: your insurer’s annual certificate states the amounts paid during the year. As the ceiling is annual, anything not paid in by 31 December does not count for 2026. The calculator below estimates your tax saving and what an extra payment would bring you.

What the calculation takes into account

• Article 111bis: up to €4,500 per year per taxpayer from the 2026 tax year; in a jointly taxed couple, each spouse with their own contract has their own ceiling.
• Article 111: €672 a year, increased by the same amount for a jointly taxed spouse and for each child giving entitlement to the child tax reduction. This ceiling also covers consumer loan interest; fire, theft, glass breakage and casco insurance are not included.
• The €480 flat rate: the tax administration automatically deducts €480 of special expenses (the sum of the flat rates, i.e. €960, for a couple in which both spouses are employees). This flat rate already covers your first premiums and 111bis payments: only what exceeds it reduces your tax.
• The tax scale: the income tax scale applicable since the 2025 tax year, still the one published by the direct tax administration (ACD), by tax class, plus 7% for the employment fund (9% above €150,000 of adjusted taxable income in classes 1 and 1a, €300,000 in class 2).

Example: in class 1, with €60,000 of taxable income and insurance premiums already above the flat rate, paying €4,500 into a 111bis contract cuts your tax by about €1,880, employment fund surcharge included.

Before 31 December: the checklist

• Check your 111bis payments for the year and, if your contract accepts free or additional payments, top up to €4,500; check the terms with your insurer or bank.
• No contract yet? A contract taken out at the end of the year counts for 2026 as long as the payment is made before 31 December, within the legal framework: a term of at least 10 years, subscription before age 65, payout between 60 and 75.
• Arrived in Luxembourg during the year? The 111bis ceiling is reduced by the full months in which you were not taxable in Luxembourg.
• Mortgage protection: a single premium opens a specific increase of the article 111 ceiling, up to €6,000 plus €1,200 per child, raised with age beyond 30 (see our mortgage protection insurance guide).
• Cross-border worker: these deductions require being treated as a tax resident (article 157ter).
• Keep your insurers’ certificates: they support the amounts in your tax return (form 100) or annual adjustment (form 163 R). As a resident employee, you can also have these expenses entered on your tax withholding card (form 164 R) to benefit from them through payroll withholding.

Further reading

Our guide to the 111bis ceiling in 2026 compares the four main contracts on the market, and our article on insurance tax deductions covers articles 111, 111bis, 110 and 157ter. To choose a contract, see our life insurance comparison.