Netherlands Income Tax Bands
Complete guide to income tax rates, brackets, and thresholds in Netherlands for the 2026 tax year.
Income Tax Brackets (Box 1) - 2026
The Netherlands uses a progressive tax system with three tax brackets. The first bracket includes both wage tax and social security contributions.
| Bracket | Income Range | Rate |
|---|---|---|
| Schijf 1 | Up to €38,883 | 35.75% |
| Schijf 2 | €38,884 - €78,426 | 37.56% |
| Schijf 3 | Above €78,426 | 49.50% |
Important Note
The first bracket rate (35.75%) includes both income tax (8.10%) and social security contributions: AOW (17.90%), Anw (0.10%), and Wlz (9.65%). Social security is only charged on income up to €38,883.
Social Security Contributions (Volksverzekeringen)
AOW (Old Age Pension)
17.90%Algemene Ouderdomswet - State pension contribution
Anw (Survivor's Benefit)
0.10%Algemene nabestaandenwet - Survivor benefits
Wlz (Long-term Care)
9.65%Wet langdurige zorg - Long-term care insurance
Total Social Security
27.65%Capped at income of €38,883
Tax Credits (Heffingskortingen)
Tax credits reduce your tax liability directly. These are the main credits available in 2026.
General Tax Credit (Algemene Heffingskorting)
Available to all taxpayers
Phases out by 6.337% for income above €28,900. Becomes €0 at income of €78,426.
Labor Tax Credit (Arbeidskorting)
For employees and self-employed
Builds up from €0, reaches maximum at €43,900. Phases out by 6.51% above this. Becomes €0 at €131,500.
Combination Credit (IACK)
For parents with children under 12
11.45% of income above €6,250. Note: Being phased out from 2027.
30% Ruling (Expatregeling)
Special tax benefit for highly skilled migrants recruited from abroad.
Key Details
- •Benefit: 30% of salary is tax-free
- •Standard threshold: €47,500 minimum gross salary
- •Under 30 with Master's: €36,100 threshold
- •Duration: Maximum 5 years
- •Salary cap: Applied to max €250,000
- •Change 2027: Reduces to 27% from January 2027
Calculate Your Take-Home Pay
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