Dutch salaries are taxed at 35.75%, 37.56% and 49.50%, with national insurance included and two tax credits worth up to about EUR 8,800 for middle incomes. Owners of 5% or more pay 24.5% or 31% on dividends in box 2. Savings and investments are taxed on a deemed return in box 3, with actual-return taxation planned from 2028. The 30% ruling gives expats up to 30% tax-free, falling to 27% from 2027.
How the Netherlands taxes individuals: three boxes
The Dutch system splits income into three boxes, each with its own rate. Box 1 covers work and home ownership at progressive rates. Box 2 covers income from a substantial interest of 5% or more in a company. Box 3 taxes savings and investments on a deemed return, not on what they actually earned.
Each person is taxed individually; there is no joint filing, though partners can allocate some items between them. National insurance premiums are included in the first box 1 bracket.
Work and home
35.75% up to EUR 38,883, 37.56% up to EUR 78,426, 49.50% above.
Substantial interest
24.5% up to EUR 68,843, 31% above.
Savings and investments
36% on a deemed return; EUR 59,357 tax-free per person.
Salary: rates and tax credits
| Box 1, 2026 (below state pension age) | Rate |
|---|---|
| Up to EUR 38,883 | 35.75% (8.10% tax + 27.65% national insurance) |
| EUR 38,883 – 78,426 | 37.56% |
| Above EUR 78,426 | 49.50% |
- General tax credit. Up to EUR 3,115, phased out between EUR 29,736 and EUR 78,426.
- Labour tax credit. Up to about EUR 5,685, phased out between EUR 45,592 and EUR 132,920.
- Employer-paid insurances. Unemployment, disability and the health levy are paid by the employer and do not reduce net pay.
- Home ownership. Mortgage interest deductible at up to 37.56%; deemed rental value of 0.35% of the home's value.
Your net salary in the Netherlands
A simplified 2026 estimate for a resident employee.
Dutch net salary, 2026
Employee below state pension age, resident. General and labour tax credits included.
The 30% ruling
Employees recruited from abroad with specific expertise can receive up to 30% of their salary tax-free for five years. In 2026 the taxable salary after the allowance must be at least EUR 48,013 (EUR 36,497 for under-30s with a master's), and the allowance is calculated on at most EUR 262,000. From 2027 the rate drops to 27%, except for people who had the ruling by the end of 2023. The partial non-resident status that let ruling holders ignore box 3 ended in 2025.
In the Netherlands the salary is taxed hard and investments are taxed on fiction. Plan both.
Box 2, box 3 and what is changing
| 2026 | |
|---|---|
| Box 2: dividends and gains on 5%+ stakes | 24.5% up to EUR 68,843 per person, 31% above |
| Box 3: deemed return on savings | 1.28% (provisional) |
| Box 3: deemed return on other assets | 6.00% |
| Box 3: deemed return on debts | 2.70% |
| Box 3: rate and allowance | 36%; EUR 59,357 per person tax-free |
| Lower actual return | Can be proven and taxed instead |
| From 2028 (planned) | Tax on actual returns, including unrealised gains; not yet final |
| Dividend withholding | 15%, credited against income tax |
| Gift and inheritance, children | 10% up to EUR 158,669, 20% above |
If you own a Dutch B.V.
A director-shareholder with 5% or more must pay himself a customary salary of at least EUR 58,000 in 2026 if resident, unless the business shows a lower amount is reasonable. The salary is taxed in box 1, the remaining profits at 19% or 25.8% in the B.V. and then 24.5% or 31% in box 2 when paid out. The combined burden on distributed profits is around 39% to 49%.
Work, substantial interests and savings, taxed separately.
General and labour credits cut tax by up to about EUR 8,800.
Up to 30% tax-free for five years; 27% from 2027.
Deemed returns now, actual returns planned from 2028.