Income tax rates in The Netherlands

The income tax rates in the Netherlands are set annually by the Dutch cabinet. The rates for Box 1, Box 2 and Box 3 can be found below.  As of 1 January 2020, the Dutch tax office applies two (instead of four) tax brackets for the Box 1 tax rates. 

Tax rates in The Netherlands 2020

Box 1 for persons not reached the statutory retirement age
Taxable income fromTaxable income to
Applicable tax rate
€ 0€ 68,50837.35 %
€ 68,508and up49.50 %

Included in the tax rate are premium social security which fall primarily in the first bracket. 


Rate Box 2 (income from a substantial interest in a limited company)

Tax rate for income from substantial interest is 25 percent.


Rate Box 3 (income from savings and investments)

Box 3 tax rate is assessed against a hypothetical assumed yield. Different from previous years, multiple tax rates for Box 3 are designed to tax income from savings and investments. Expats enjoying the 30 percent ruling can opt to be exempted from taxation in box 3 on savings and investments (outside the Netherlands).


Assets up to € 30,846 per person (€ 61,692 combined with your fiscal partner) are not taxed. For assets beyond this ceiling the rates in below table applies. 

Total asset valueApplied average tax rate over total asset value
€ 0 – € 72,7981.799 %
€ 72,798 – € 1,005,5734.223 %
€ 1,005,573 and over5.33 %



Tax rates in The Netherlands 2019

Box 1 for persons not reached the statutory retirement age
Taxable income from Taxable income to
Applicable tax rate
€ 0€ 20,38436.65 %
€ 20,385 € 34,300 38.10 %
€ 34,301 € 68,507 38.10 %
€ 68,508  and up 51.75 %


Rate Box 2 (income from a substantial interest in a limited company)

Tax rate for income from substantial interest is 25 percent.


Rate Box 3 (income from savings and investments)

Box 3 tax rate is assessed against a hypothetical assumed yield. Different from previous years, multiple tax rates for Box 3 are designed to tax income from savings and investments. Expats enjoying the 30 percent ruling can opt to be exempted from taxation in box 3 on savings and investments (outside the Netherlands).


Assets up to € 30,360 per person (€ 60,720 combined with your fiscal partner) are not taxed. For assets beyond this ceiling the rates in below table applies. 


Total asset value Applied average tax rate over total asset value
€ 0 – € 71,651 1.935 %
€ 71,651 – € 989,737 4.451 %
€ 989,737 and over 5.60 %

Historical Overview Box 3 Tax Rates (assets)

YearTax Free Assets (single)Tax free Assets (with partner)
2020€ 30,846€ 61,692
2019€ 30,360€ 60,720
2018€ 30,000€ 60,000
2017€ 25,000€ 50,000


Blue Umbrella for Dutch tax matters

Living and working in the Netherlands for a time? We can help you with your Dutch taxes, so you don't have to deal with the Belastingdienst yourself. Whether you're employed or have a small business, we'll make your life easier and save you money.

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