The Netherlands has a relatively simple Box 1 income tax with two brackets: 36.97% up to €75,518 and 49.50% above. These rates include both income tax and social security contributions (premies volksverzekeringen).
What are the general tax credit and labour discount?
The general tax credit (algemene heffingskorting) is up to €3,362 and phases out at higher incomes. The labour tax discount (arbeidskorting) is up to €5,532 for workers and also phases out. Both reduce your tax bill directly.
What is Box 2 and Box 3?
Box 2 covers income from substantial interest (5%+ shareholding) taxed at 24.5%/33%. Box 3 taxes deemed returns on savings and investments. This calculator only covers Box 1 (employment and home ownership).
Is the 30% ruling included?
No. The 30% ruling is a tax advantage for expat employees, allowing 30% of their salary to be paid tax-free. If you qualify, your effective tax rate will be significantly lower.
What are social security contributions in the Netherlands?
Social security premiums (AOW, ANW, WLZ) are integrated into the Box 1 tax rate for the first bracket. Employees also pay contributions to unemployment insurance and disability through payroll deductions.
This calculator provides estimates based on 2025 tax rates for Netherlands. It does not account for all deductions, credits, or your specific filing status. Consult a qualified tax professional before making financial decisions. PayTaxFast is not a law firm, tax advisor, or financial advisor.
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