What is the Netherlands Income Tax?
The Netherlands taxes employment income in box 1. For 2026 there are three bands: 35.75% up to €38,883, 37.56% up to €78,426 and 49.5% above. National insurance premiums are bundled into the first band rate.
Two large credits reduce the bill: the general tax credit and the labour tax credit, both of which taper away as income rises. The 30% ruling lets qualifying skilled migrants receive 30% of salary tax-free.
Formula & worked example
Net tax = Tax − general credit − labour credit
Worked example: a €70,000 salary produces about €25,588 of tax before credits. General and labour credits of roughly €4,635 cut the net tax to about €20,953, leaving monthly net pay near €4,087. With the 30% ruling, only €49,000 is taxable and net pay rises substantially.
How to use this netherlands income tax calculator
- Enter your gross annual salary.
- Indicate whether the 8% holiday allowance is already included.
- Select the 30% ruling if you qualify as an incoming skilled migrant.
- Note the credits — they are large at moderate incomes and vanish at high ones.
Smart tips
- Dutch job offers often quote salary excluding the 8% holiday allowance — always check which figure you are given.
- The 30% ruling (expatregeling) stays at a maximum 30% for 2026 and falls to a maximum 27% from 2027, and it is capped — check the Belastingdienst conditions before relying on it.
- Mortgage interest on a main home is deductible in box 1, a significant benefit for Dutch homeowners.
- Pension contributions are typically deducted before tax through the employer scheme.
- Wealth is taxed separately in box 3 on a deemed-return basis, not on actual gains.
Frequently asked questions
What are Dutch income tax rates?
For 2026, 35.75% on income up to €38,883, 37.56% from €38,883 to €78,426 and 49.5% above. National insurance premiums are included in the first-band rate.
What is the 30% ruling?
A tax facility letting qualifying incoming skilled workers receive 30% of their salary free of income tax for a limited period.
What is the holiday allowance?
An extra 8% of annual salary, normally paid in May. Some quoted salaries include it and some do not.
What are the Dutch tax credits?
The general tax credit and the labour tax credit, both reducing tax directly and tapering away as income increases.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: Belastingdienst — box 1: tarieven en schijven, Belastingdienst — tabel algemene heffingskorting 2026, Belastingdienst — tabel arbeidskorting 2026. How we check these numbers.