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Income tax in Netherlands 2026
Salary, business profit and your home's imputed value flow into Box 1, taxed at 35.75% to €38,883, 37.56% to €78,426 and 49.5% above — the first band being mostly national insurance rather than income tax.
There are no personal allowances; income-dependent tax credits do the work instead — up to €3,115 general credit and €5,685 employment credit, both melting away as income rises.
Mortgage interest on your main home stays deductible, but only at the 37.56% rate even for top-band earners.
At a glance
- top rate
- 49.5% above €78,426
- entry band
- 35.75% to €38,883 (8.1% tax + 27.65% national insurance)
- tax year basis
- Calendar year
- filing deadline
- 1 May; wage tax withheld monthly as a prepayment
- residency basis
- Residents taxed on worldwide income
- regime flag
- 30% ruling shelters up to 30% of expat salaries
Rates
Box 1 — employment, business and home (2026)
| Band (EUR) | Rate on this band | Note |
|---|---|---|
| 0 – 38,883 | 35.75% | Of which 27.65% is national insurance; pensioners pay 17.85% here |
| 38,883 – 78,426 | 37.56% | |
| Over 78,426 | 49.5% |
Marginal rates apply within each band.
Thresholds & allowances
- General tax creditUp to €3,115
Phases out between €29,736 and €78,426 of income
- Employment tax creditUp to €5,685
Phases out from €45,592, gone at about €132,920
- Self-employed deductions€1,200 entrepreneur deduction (+€2,123 for starters) and a 12.71% profit exemption
Requires 1,225+ hours a year in the business; the fixed deduction keeps shrinking (to €900 in 2027)
- Owner-occupied homeImputed income up to 0.35% of official value (2.35% on value above €1.35 million)
Mortgage interest deductible at a maximum 37.56% rate; post-2013 loans must amortise over 30 years
- Pension build-up ceiling€137,800 of salary
Above it, only net (non-deductible) top-up schemes
Residency
Residency trigger
Residence follows facts and circumstances — a permanent home, family and economic life in the Netherlands. Leave without settling anywhere else and return within 1 year, and you count as having stayed resident throughout.
Non-resident treatment
Non-residents pay Dutch tax on Dutch-source income under mostly resident rules. Residents of the European Economic Area (EEA), Switzerland or the Dutch Caribbean islands earning 90%+ of income in the Netherlands qualify for full resident deductions and credits.
Notes
- The three boxes are watertight: a loss in one box cannot offset income in another.
- A company car adds 22% of list price to taxable salary (17%–18% for electric cars on the first €30,000, converging to 22% by 2028); commuting reimbursements are tax-free up to €0.23/km.
- Employee stock options are taxed when the shares become tradeable (or at exercise, by election).
- Directors owning 5%+ must pay themselves a market salary — at least €58,000 or the pay of comparable roles, whichever is higher.
- Business losses carry back 3 years and forward 9.
- Employers pay a separate 75% levy on severance packages above €700,000 — invisible to the employee but real money for the company.
FAQ
What is the top income tax rate in the Netherlands?
49.5%, on Box 1 income above €78,426. The first €38,883 is taxed at 35.75%, most of which is national insurance rather than income tax.
How does the Dutch 30% ruling work?
Qualifying employees recruited from abroad (salary at least €48,013 in 2026, or €36,497 for under-30s with a master's) can receive 30% of pay tax-free for up to 5 years. New entrants from 2027 get 27%, and the benefit is capped at a €262,000 salary.
When is the Dutch tax return due?
By 1 May of the following year, filed online; extensions are routinely granted and refunds usually flow automatically after assessment.
Figures: tax year 2026, compiled from public sources. Not tax advice.