Income tax rates in the Netherlands

Below tables show how much tax you pay in the Netherlands over your income sources. The Dutch tax office distinguishes three types of aggregate income sources, grouped in so-called boxes; box 1, 2 and 3. Each box has it's own set of tax rates, defining how much tax you pay over your income source. 

  • Box 1 shows the amount of tax you pay on income from employment (including owner-occupied home ownership).  
  • Box 2 shows the amount of tax you pay on income from business ownership. 
  • Box 3 shows how much tax you pay on your assets (such as cash, bank deposits, real estate and investments). For each box a different set of taxation rules applies, defining the tax amount expressed in a percentage (the tax rates).  

The tax rates 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.


Filing your taxes over 2019? Check the 2019 tax rates listed under 2019!

Tax rates in the Netherlands 2020

Below you find tax rates applicable for the year 2020. Tax rates applicable to your income from employment are listed in box 1. Note that different tax rates applies for persons who reached the Dutch statutory retirement age. 

Box 1 (income from work and owner-occupied home ownership)

Tax bracket (income range)Applicable tax rate
€ 0 - € 68,50737.35 %
€ 68,508 and up49.50 %

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


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

Tax rate for income from substantial interest is 25 percent.


Box 3 (income from savings and investments)

Box 3 tax rate is assessed against a hypothetical yield. For example, you are not directly taxed for capital gains or rental income. Instead, the Dutch tax office assumes a yield up to 5.28 percent depending on your total asset value. This fictitious yield is taxed against a rate of 30 percent, irrespective of the actual yield obtained on your assets. Expats enjoying the 30 percent ruling can opt to be exempted from Dutch taxation in box 3.


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

Total asset valueAverage tax rate over total asset value
€ 0 – € 72,7971.789 %
€ 72,798 – € 1,005,5724.185 %
€ 1,005,573 and over5.28 %


Tax rates in The Netherlands 2019

Below you find tax rates applicable for the tax year 2019. Tax rates on your income form employment are listed in box 1. Note that different tax rates are applied to persons who reached the Dutch statutory retirement age. 

Box 1 (income from work and owner-occupied home ownership)

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 %


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

Tax rate for income from substantial interest is 25 percent.


Box 3 (income from savings and investments)

Box 3 tax rate is assessed against a hypothetical yield. For example, you are not directly taxed for capital gains or rental income. Instead, the Dutch tax office assumes a yield up to 5.59 percent depending on your total asset value. This fictitious yield is taxed against a rate of 30 percent, irrespective of the actual yield obtained on your assets. Expats enjoying the 30 percent ruling can opt to be exempted from Dutch taxation in box 3.


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 Average tax rate over total asset value
€ 0 – € 71,650 1.931 %
€ 71,651 – € 989,736 4.443 %
€ 989,737 and over 5.59 %

Historical Overview Box 3 Tax Rates

Box 3 shows how much tax you pay on your assets (such as cash, bank deposits, real estate and investments). The applicable tax rates are set by the Dutch cabinet annually. For a historic overview of applicable box 3 tax rates refer to the table below. 

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



Sign up free  Contact us


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.

4,7