Income tax rates in the Netherlands
The tables below show how much tax you owe in the Netherlands for different types of income. The Dutch tax office divides income into three sources, known as boxes; box 1, 2 and 3. Each box has its own set of tax rates, defining how much tax you pay for this income source.
- Box 1 shows the amount of tax you owe on income from employment (including a home that you live in and own).
- Box 2 shows the amount of tax you owe on income from business ownership.
- Box 3 shows how much tax you owe on your assets (such as cash, bank deposits, real estate, and investments).
- For each box, a different set of taxation rules applies, and the taxable amounts are expressed as percentages (tax rates).
Tax rates are set annually by the Dutch government. The rates for box 1, box 2 and box 3 can be found below. As of 1 January 2020, the Dutch tax office has two (instead of four) tax brackets for box 1.
Tax brackets Netherlands
Tax brackets in the Netherlands vary depending on the type of income, box 1, 2, or 3. For box 1 tax (on income from employment, including home ownership), there is a 36.93% tax rate for income from € 0 - € 73,031. Above this, the tax rate is 49.5%. For box 2, there are no brackets: any direct or indirect interest of 5% or more in a company is taxed at 26.9% in 2023. Box 3, the tax on assets, is based on a fictitious yield of up to 6,17% of the total asset value, taxed at 32%. If your total box 3 income is less than €57,000 (or €114,000 combined with your fiscal partner), there's no tax to pay.
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