Netherlands Personal Income Tax
Detailed personal income tax rates and rules for Netherlands in 2026.
The Netherlands uses a unique 'box' system for personal income tax (inkomstenbelasting). Box 1 covers employment income, business profits, and primary residence income, with two brackets: 36.97% up to €75,518 and 49.5% above. The lower bracket rate includes social security premiums (27.65% social contributions + 9.32% income tax). Taxpayers over state pension age pay a lower rate on the first bracket as they no longer contribute to AOW pension. Box 2 covers income from substantial shareholdings (5% or more) at 24.5% up to €67,000 and 33% above. Box 3 covers savings and investments.
| Income Range (EUR) | Tax Rate |
|---|---|
| €0 – €76K | 37.0% |
| €76K+ | 49.5% |
Filing Deadline
May 1 of the following year (extensions available until September 1)
Residency Rule
An individual is a Dutch tax resident if they have a permanent home in the Netherlands or their center of life interests is in the Netherlands. Residents are taxed on worldwide income across all three boxes. Non-residents are taxed only on Dutch-source income.
Additional Notes
The 30% ruling allows qualifying expat employees to receive 30% of their employment income tax-free for up to 5 years (reduced from the original 8 years). From 2024, the maximum is being phased down to 27% in year 1 and 2, and further reductions apply. The tax-free allowance is capped at the Balkenende norm (approximately €233,000). This makes the Netherlands attractive for international talent.
How Netherlands Income Tax compares
Netherlands’s top personal income tax rate of 49.5% is the 15th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Europe’s regional average of 32%.
