Luxembourg Carbon Tax CO2 2027 Calculator
Estimate annual carbon (CO2) tax cost on diesel, petrol, and heating oil in Luxembourg for 2027 — the €45/tonne CO2 rate, fuel-type emission factors, and the offsetting carbon tax credit refunded via tax return.
How the Carbon Tax Stacks on Fuel
Luxembourg levies a CO2 surcharge on diesel, petrol, and heating oil — currently €45 per tonne of CO2 emitted for 2027, scheduled to rise to €60/t by 2030. Each liter of diesel emits ~2.68 kg CO2; petrol ~2.31 kg; heating oil ~2.66 kg. The tax is built into the pump or delivery price and is not separately itemized on the receipt.
The CO2 Credit Refund
To offset the regressive impact on low-income households, Luxembourg returns part of the CO2 revenue via a CO2-Mobilité credit on the annual income tax return — approximately €168 per household member for 2027. Larger households often receive more in credit than they pay in CO2 tax, making the scheme net-beneficial for families using less fuel than average. Households heavily reliant on driving and oil heat pay more than they get back.
Cross-Border Fuel Tourism
Luxembourg historically had lower fuel duty than DE, FR, and BE, drawing cross-border "fuel tourism." The CO2 tax narrows but does not eliminate this gap — a typical 60L diesel fill in LU 2027 still costs €5-10 less than in France due to lower base excise. Trucking firms in particular continue to fuel in LU. EU pressure may further harmonize duty by 2030.
Heating Oil Phase-Out
New residential heating oil installations are banned from 2030 under the LU climate law. Existing systems can continue but face escalating CO2 tax (€55/t in 2028, €60/t in 2030). Conversion subsidies (Klimabonus Wunnen) cover 25-40% of heat-pump replacement cost for owner-occupied homes, payable through MyGuichet portal. Combined with the CO2 tax escalation, the payback on conversion now hits 6-8 years.
Sources: impotsdirects.public.lu CO2 2027, mev.gouvernement.lu climate law. Last updated: May 2026.
Frequently Asked Questions
What is the LU carbon tax rate for 2027?
€45 per tonne CO2, applied to diesel (~12¢/L), petrol (~10¢/L), and heating oil (~12¢/L). Scheduled increase to €55/t by 2028 and €60/t by 2030.
How much is the CO2 credit refund per person?
Approximately €168 per household member for 2027 (indexed annually). Refund is automatically claimed through the annual income tax return (Form 100) for resident taxpayers.
Do non-resident frontaliers get the refund?
No. The CO2-Mobilité credit is reserved for Luxembourg tax residents. Frontaliers pay the CO2 tax in fuel prices without offset.
Will heating oil be banned?
New installations are banned from 2030 under the LU climate law. Existing systems may continue but face rising CO2 tax. Klimabonus Wunnen subsidies (25-40%) help fund heat-pump replacement.
Is this tool private?
Yes. All math runs in your browser. Fuel usage data is never sent, stored, or shared.