Belgium taxes salaries at 25% to 50% plus about 7% municipal surcharge, after 13.07% social security with no ceiling, which makes it one of the most expensive countries in Europe for employees. From 2026 it also taxes financial gains at 10% above EUR 10,000 a year. Recruited expats earning EUR 70,000 or more can receive 35% of their pay tax-free.
How Belgium taxes individuals
Belgium has some of the highest taxes on salaries in Europe and, until 2026, some of the lightest on investment gains. Employees pay 13.07% social security with no ceiling, then federal income tax at 25% to 50%, then a municipal surcharge of about 7% of that tax. The Arizona government reforms change both sides: a higher tax-free sum on salaries, and a new tax on capital gains from 2026.
Federal rates
50% already above EUR 51,070 of taxable income.
Employee social security
On the full salary, without a ceiling.
New capital gains tax
On financial gains above EUR 10,000 a year, from 1 January 2026.
The 2026 rates
| Taxable income, 2026 | Federal rate |
|---|---|
| Up to EUR 16,720 | 25% |
| EUR 16,720 – 29,510 | 40% |
| EUR 29,510 – 51,070 | 45% |
| Above EUR 51,070 | 50% |
- Tax-free sum. EUR 11,550 in 2026, rising step by step to EUR 15,300 by 2029; more for dependent children.
- Municipal surcharge. 0% to 9% of the federal tax, about 7% on average.
- Lump-sum expenses. 30% of salary after social security, capped at about EUR 5,930, unless real expenses are higher.
- Special social security contribution. Up to about EUR 731 a year per household.
Your net salary in Belgium
A simplified 2026 estimate for a single resident employee.
Belgian net salary, 2026
Employee, resident, single, average 7% municipal surcharge. Lump-sum expenses and the tax-free sum included.
Dividends, interest and the new capital gains tax
| Income | Treatment in 2026 |
|---|---|
| Dividends | 30% withholding; about EUR 859 a year exempt per person |
| Savings account interest | Exempt up to about EUR 1,020, then 15% |
| Other interest | 30% |
| Financial gains (new) | 10% above EUR 10,000 a year, from 1 January 2026; gains before 2026 are not taxed |
| Substantial stakes of 20% or more | First EUR 1 million over five years exempt, then 1.25% rising to 10% |
| Selling shares to your own company | 33% |
| Securities accounts above EUR 1 million | 0.15% a year |
| Inheritance in direct line (Flanders) | 3% up to EUR 50,000, 9% to EUR 250,000, 27% above |
Belgium used to tax work like a high-tax country and gains like a tax haven. From 2026 it taxes both, just not equally.
The expat regime and company directors
Since 2025 recruited expats earning at least EUR 70,000 can receive 35% of their pay as a tax-free cost allowance, without the former EUR 90,000 cap, for five years plus three. Company directors who want their company to keep the reduced 20% corporate rate must pay themselves at least EUR 45,000, rising to EUR 50,000 from 2026 under the reform.
For many Belgian residents working in Luxembourg the comparison is direct: the salary is taxed in Luxembourg, often at a lower rate, as long as the 34-day limit on work outside Luxembourg is respected.
50% from EUR 51,070, 13.07% social security without a ceiling.
EUR 11,550 in 2026, EUR 15,300 by 2029.
10% above EUR 10,000 a year from 2026.
A tax-free allowance for recruited expats from EUR 70,000.