Income tax rates in the Netherlands

The tables below shows 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.


Filing your taxes for 2019? Check the 2019 tax rates below!

Tax rates in the Netherlands 2020

These are the 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 apply for people who have reached the Dutch statutory retirement age. 

Box 1 (income from work and a home you live in and own)

Tax bracket (income range)Applicable tax rate
€ 0 - € 68,50737.35 %
€ 68,508 and upwards49.50 %

This tax rate includes social security premiums, which are levied primarily in the first bracket. 


Box 2 (income from a substantial interest of more than 5% in a company)

The tax rate for income from a substantial interest is 25%.


Box 3 (income from savings and investments)

The 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 of up to 5.28% depending on your total asset value. This fictitious yield is taxed at a rate of 30% percent, irrespective of the actual yield obtained on your assets. Expats who have the 30% ruling can opt to be exempted from Dutch taxation in box 3. 


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

These are the tax rates applicable for the tax year 2019. Tax rates on your income from employment are listed in box 1. Note that different tax rates are applied to people who have reached the Dutch statutory retirement age.

Box 1 (income from work and a home that you live in and own)

Taxable income fromTaxable income to
Applicable tax rate
€ 0€ 20,38436.65 %
€ 20,385€ 34,30038.10 %
€ 34,301€ 68,50738.10 %
€ 68,508 and upwards51.75 %


Box 2 (income from a substantial interest of more than 5% in a company)

The tax rate for income from a substantial interest is 25%.


Box 3 (income from savings and investments)

Box 3 tax 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%, depending on your total asset value. This fictitious yield is taxed at a rate of 30%, irrespective of the actual yield obtained on your assets. Expats who have the 30% 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 following rates apply:


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 that you do not live in and investments). The applicable tax rates are set by the Dutch government annually. For a historic overview of applicable box 3 tax rates, see 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



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