In 2026 Dutch employment income is taxed at 35.75% up to EUR 38,883, 37.56% up to EUR 78,426 and 49.50% above, with national insurance contributions inside the first bracket. The general tax credit (up to EUR 3,115) and labour credit (up to EUR 5,685) reduce the bill but phase out as income rises. Holiday allowance of 8% comes on top of most salaries. Under the 30% ruling, 30% of salary can be paid tax-free if the taxable salary exceeds EUR 48,013; the rate falls to 27% in 2027. Employers add roughly 17% in statutory premiums up to EUR 79,409.
From gross to net in the Netherlands
A Dutch salary offer is almost always quoted gross. Between that figure and what lands in your bank account sit three things: wage tax, national insurance contributions, and two tax credits that pull the bill back down. The tax and the contributions are collected together by the employer as one levy, the loonheffing, and shown as a single line on the payslip.
The system is progressive but flatter than it looks at first. In 2026 there are three box 1 rates for employees below state pension age: 35.75%, 37.56% and 49.50%. The first rate already contains the national insurance contributions for state pension, survivors' benefits and long-term care. On top of that, the general tax credit and the labour credit are worth up to EUR 8,800 a year together for a middle income, and they shrink as income rises. That phase-out is why the effective rate at EUR 70,000 is nearly double the rate at EUR 40,000.
Two more items change the picture for many readers. Holiday allowance of at least 8% is paid on top of the stated salary in most contracts, usually in May. And employees recruited from abroad can receive 30% of their salary tax-free under the 30% ruling, provided the salary clears a threshold. This note walks through each step with the 2026 figures, shows a payslip line by line, works through three salaries and ends with a calculator.
49.50%
Above EUR 78,426 of taxable income.
Up to EUR 8,800
General tax credit plus labour credit.
8%
Paid on top, usually in May.
30% in 2026
27% from 2027.
Income tax brackets and what is inside them
Employment income is taxed in box 1. The rates below apply to people who have not reached state pension age, which is 67 in 2026. Each rate applies only to the part of taxable income inside its band.
| Taxable income 2026 | Rate | Of which national insurance |
|---|---|---|
| Up to EUR 38,883 | 35.75% | 27.65% (state pension 17.90%, survivors 0.10%, long-term care 9.65%) |
| EUR 38,883 to EUR 78,426 | 37.56% | None |
| Above EUR 78,426 | 49.50% | None |
The national insurance contributions are capped at the first bracket: 27.65% of EUR 38,883, or about EUR 10,751 a year. So the 35.75% in the first bracket is 8.10% income tax plus 27.65% contributions. Someone who works in the Netherlands but is covered by another country's social security, for example under an A1 certificate, pays only the 8.10% tax part in that bracket. This matters for cross-border workers and seconded staff.
Employee insurances (unemployment and disability) are paid by the employer, not deducted from the employee's salary, so they do not appear in the net calculation. The same goes for the income-related health insurance contribution under the Zvw: the employer pays it on top. The employee does pay a nominal monthly premium for basic health insurance directly to an insurer of choice, outside payroll.
Above state pension age the first bracket rate drops to 17.85%, because the state pension contribution falls away. Our calculator does not model that case. For people born before 1946 the first bracket is slightly longer, at EUR 41,123.
Law and practice: Income Tax Act 2001 (Wet IB 2001), Article 2.10 for the box 1 rates; Wage Tax Act 1964; Social Insurance Financing Act (Wfsv) for the national insurance contribution rates. Rates and brackets as published by the Belastingdienst for 2026; national insurance percentages as fixed for 2026.
General tax credit and labour credit
Tax credits are deducted from the tax and contributions due, not from income. Every euro of credit is a euro of extra net pay. The employer applies them through payroll if you sign the payroll tax statement for that job; you should claim them with one employer only.
The general tax credit (algemene heffingskorting) is EUR 3,115 in 2026 for incomes up to EUR 29,736. Above that it falls by 6.398% of every extra euro and reaches zero at EUR 78,426. At EUR 50,000 it is worth about EUR 1,820; at EUR 70,000 about EUR 540.
The labour credit (arbeidskorting) rewards working. It builds up from the first euro, reaches its maximum of EUR 5,685 at EUR 45,592 of employment income, and is then withdrawn at 6.510% until it disappears at EUR 132,920.
| Employment income 2026 | Labour credit |
|---|---|
| Up to EUR 11,965 | 8.324% of income |
| EUR 11,965 to EUR 25,845 | EUR 996 + 31.009% of income above EUR 11,965 |
| EUR 25,845 to EUR 45,592 | EUR 5,300 + 1.950% of income above EUR 25,845 |
| EUR 45,592 to EUR 132,920 | EUR 5,685 minus 6.510% of income above EUR 45,592 |
| Above EUR 132,920 | Nil |
Put the two phase-outs together and you get a hidden marginal rate. Between EUR 45,592 and EUR 78,426 both credits shrink at the same time: 6.398% plus 6.510% is almost 13 points on top of the 37.56% rate, so each extra euro of salary in that band is taxed at about 50.5%. Above EUR 78,426 the general credit is gone, the bracket rate is 49.50% and the labour credit is still being withdrawn, which gives an effective marginal rate of about 56% up to EUR 132,920. Only above that does the marginal rate settle at 49.50%. This is worth knowing when you negotiate a raise or decide how much salary to take from your own company.
Law and practice: Income Tax Act 2001, Articles 8.10 (general tax credit) and 8.11 (labour credit); amounts and percentages for 2026 as published by the Belastingdienst for the provisional assessment 2026. Part-time and low incomes may also qualify for other credits not covered here.
Holiday allowance, 13th month and pension
Dutch law gives every employee a holiday allowance of at least 8% of the gross salary earned over the year. Most employers accrue it monthly and pay it out in May or June; some pay it each month. For tax purposes it is ordinary wage, so it is taxed at the same marginal rate as the top slice of your salary. When an employer offers EUR 5,000 a month, the annual gross is EUR 60,000 plus EUR 4,800 holiday allowance: EUR 64,800.
A 13th month is not required by law. It comes from the employment contract or a collective labour agreement (CAO), which can also fix pay scales, overtime and allowances for a whole sector. Like holiday pay, it is taxed as wage. If your contract includes both, the annual gross is 13.96 times the monthly salary (12 × 1.08 + 1).
Pension contributions work the other way. In most Dutch pension schemes the employee pays part of the premium through payroll, often between 3% and 8% of the pensionable salary above an offset. That contribution is deducted before wage tax, so it lowers taxable income. The employer pays the larger share on top. Not every employer has a pension scheme, but where a sector pension fund is mandatory, participation is too.
Two common extras are tax-free within limits. A travel allowance per kilometre can be paid without tax up to a statutory limit, and employers have a work-related costs scheme (werkkostenregeling) that allows a percentage of the total wage bill to be spent on untaxed benefits. These do not change the calculation of tax on salary but they do change the take-home figure.
Law and practice: Minimum Wage and Minimum Holiday Allowance Act (Wml), Article 15 for the 8% holiday allowance; Wage Tax Act 1964, Article 31a for the work-related costs scheme; Pension Act and the Mandatory Participation in an Industry-wide Pension Fund Act.
The 30% ruling in 2026 and the step down in 2027
An employee recruited from abroad with specific expertise can receive a tax-free allowance for the extra costs of living away from home. Under the 30% ruling (now formally the expat scheme) the employer may pay that allowance as a flat 30% of the total salary, without proving actual costs. In practice the employee's taxable salary falls to 70% of the gross, and the tax bill falls with it.
| Condition 2026 | Rule |
|---|---|
| Recruitment | Hired from abroad; lived more than 150 km from the Dutch border for at least 16 of the 24 months before starting |
| Salary threshold | Taxable salary (after the allowance) above EUR 48,013 a year |
| Under 30 with master's | Taxable salary above EUR 36,497 a year |
| Cap | Allowance limited to 30% of EUR 262,000: EUR 78,600 a year |
| Duration | Maximum 60 months, reduced by earlier stays or work in the Netherlands |
| Rate | 30% in 2026; 27% from 1 January 2027 |
| Application | Employer and employee apply jointly to the Belastingdienst within four months of the start |
The threshold is tested on the salary after the allowance. To keep the full 30% at the general threshold, gross pay must therefore be at least EUR 68,590 (EUR 48,013 divided by 0.7). Below that, the allowance can be reduced so that the taxable part still reaches EUR 48,013; at EUR 60,000 gross, for example, the allowance is limited to EUR 11,987, or about 20%. Our calculator applies that rule.
From 2027 the flat percentage falls to 27% for new and existing users. Employees who already benefited from the ruling in December 2023 keep 30% for the rest of their term. The salary cap of EUR 262,000, the public-sector pay limit under the WNT, now applies to everyone: the transitional exemption for rulings granted before 2023 ended on 1 January 2026.
A software engineer moves from Lisbon to Amsterdam on EUR 70,000 gross a year including holiday allowance. Without the ruling the tax and contributions after credits are about EUR 20,950, leaving EUR 49,050 net. With the ruling, EUR 21,000 is paid tax-free, taxable salary is EUR 49,000, and the bill falls to about EUR 10,350. Net pay rises to about EUR 59,650, some EUR 10,600 more a year. At 27% from 2027 the allowance would be EUR 18,900 and the gain somewhat smaller.
Law and practice: Wage Tax Act 1964, Article 31a(2)(e); Implementing Decree Wage Tax 1965, Article 10e and following; 2026 salary thresholds published by the Belastingdienst and the IND. The reduction to 27% from 2027 was enacted in the Tax Plan 2025 package. More detail in our note on the 30% ruling.
What the employer pays on top of gross
Gross salary is not the full cost of an employee. A Dutch employer pays several premiums on top, all calculated on the wage up to the maximum premium wage of EUR 79,409 in 2026. Above that level the additional cost per euro of salary is close to nil, apart from pension.
| Employer contribution 2026 | Rate | Basis |
|---|---|---|
| Unemployment (WW, AWf) | 2.74% permanent contract; 7.74% fixed-term or flexible | Up to EUR 79,409 |
| Disability (Aof basic premium) | 6.27% small employers; 7.63% medium and large; plus 0.50% childcare surcharge | Up to EUR 79,409 |
| Return-to-work fund (Whk) | Set per employer; 1.52% average reference premium | Up to EUR 79,409 |
| Health insurance (Zvw employer levy) | 6.10% | Up to EUR 79,409 |
| Pension | Per scheme; often the larger share | Pensionable salary |
For a small employer with a permanent employee, the statutory premiums come to roughly 17% of salary, or about EUR 13,600 on any salary above the cap. A fixed-term contract costs five points more in unemployment premium. The calculator uses 17.13%: 2.74% WW, 6.77% Aof including the childcare surcharge, 1.52% Whk and 6.10% Zvw. Sector funds, the employer's pension share and sickness insurance come on top, so a realistic all-in budget is often 25% to 35% above gross salary.
Every Dutch employer also carries continued salary payment during sickness, at least 70% of salary for up to 104 weeks. Most small employers insure that risk privately. It is not a payroll premium, but it belongs in any honest cost comparison.
Law and practice: Social Insurance Financing Act (Wfsv); Health Insurance Act (Zvw); rates for 2026 as fixed by the Ministry of Social Affairs and Employment and published in the Belastingdienst calculation rules for 2026. Civil Code, Article 7:629 for salary during sickness.
A payslip, line by line, and three salaries
The table follows an employee on EUR 5,000 a month, no 30% ruling and a 4% employee pension contribution, in a month without holiday allowance. Payroll uses monthly tables that spread the annual credits evenly, so the figures below are monthly averages, rounded.
| Payslip line | Amount | Comment |
|---|---|---|
| Gross salary | EUR 5,000 | Contract salary |
| Employee pension contribution | minus EUR 200 | 4% deducted before tax |
| Taxable wage (loon voor de loonheffing) | EUR 4,800 | Basis for wage tax |
| Wage tax and national insurance (loonheffing) | minus EUR 1,225 | After the general tax credit and labour credit |
| Net salary | EUR 3,575 | Paid to the bank account |
| Holiday allowance accrued | EUR 400 | Usually paid in May, taxed at the special-payment rate |
The special-payment table (tabel bijzondere beloningen) taxes holiday allowance and bonuses at a flat percentage based on the annual wage, so the May payslip shows a higher deduction than a normal month. Over the full year it evens out in the income tax return. That is also why monthly net figures from calculators are best read as one twelfth of the annual net.
Here are three annual salaries, each including holiday allowance, with no pension contribution and no other income. The tax figure is after both credits.
| Gross a year | Tax after credits | Net a year | Net a month (average) | Effective rate | Employer premiums |
|---|---|---|---|---|---|
| EUR 40,000 | EUR 6,286 | EUR 33,714 | EUR 2,810 | 15.7% | about EUR 6,850 |
| EUR 70,000 | EUR 20,953 | EUR 49,047 | EUR 4,087 | 29.9% | about EUR 11,990 |
| EUR 120,000 | EUR 48,491 | EUR 71,509 | EUR 5,959 | 40.4% | about EUR 13,600 |
Tax before credits is EUR 14,320: 35.75% of EUR 38,883 plus 37.56% of the remaining EUR 1,117. The general tax credit is EUR 2,458 and the labour credit EUR 5,576, so the bill drops to EUR 6,286. Monthly net pay averages EUR 2,810. The employer pays roughly EUR 6,850 in premiums on top, so the cost before pension is about EUR 46,850.
Tax before credits is EUR 25,588. The general credit has shrunk to EUR 539 and the labour credit to EUR 4,096. The bill is EUR 20,953 and net pay EUR 49,047. Thirty thousand euros more gross than in the first example produces about EUR 15,300 more net, because each extra euro here loses about half to tax and credit phase-outs.
Tax before credits is EUR 49,332 and only EUR 841 of labour credit remains. Net pay is EUR 71,509, or EUR 5,959 a month on average. With the 30% ruling, EUR 36,000 is tax-free, taxable salary is EUR 84,000, and net rises to about EUR 91,670. The employer's statutory premiums stop growing at the EUR 79,409 cap.
Law and practice: Calculations by BCA EU using the 2026 rates, brackets and credits above, for an employee below state pension age with only employment income and the payroll tax credit claimed with this employer. Monthly figures are one twelfth of the annual result.
Calculate your Dutch net salary
The calculator applies the 2026 box 1 rates, both tax credits, the 30% ruling with its threshold and cap, and the main employer premiums. It assumes one job, no other income and no benefits in kind.
Dutch salary calculator 2026: gross to net
Enter the gross annual salary. You see the annual and monthly net pay, the effective tax rate and what the employer pays on top.
If you are hiring in the Netherlands, the same numbers drive the budget: gross salary, holiday allowance, employer premiums and pension. A foreign company can run Dutch payroll without a Dutch entity by registering as a non-resident employer with the Belastingdienst, but most groups with staff on the ground find a local B.V. simpler for contracts, pension and the 30% ruling application. If you own the company and are also its director, the rules change again: you are taxed on a customary salary of at least EUR 58,000 and the rest comes out as dividend. Our note on paying a non-resident director of a Dutch B.V. covers that case.
35.75%, 37.56%, 49.50% in 2026.
Phase-outs push marginal rates above 50%.
8% on top, taxed as wage.
Taxable salary above EUR 48,013; 27% from 2027.
Dutch salary and net pay: frequent questions
How much tax do I pay on EUR 60,000 in the Netherlands in 2026?
On EUR 60,000 a year without the 30% ruling or pension contributions, wage tax and national insurance contributions come to about EUR 15,900 after the general tax credit and labour credit. That leaves roughly EUR 44,100 net a year, or about EUR 3,675 a month on average. If the EUR 60,000 excludes holiday allowance, the 8% on top adds EUR 4,800 gross.
Is holiday allowance included in a Dutch salary?
Usually not. Dutch offers state a monthly salary and holiday allowance of at least 8% on top, mostly paid in May. Some employers quote an all-in annual figure that already includes it. Always ask which one you are looking at before you compare offers.
What are the 30% ruling salary thresholds in 2026?
The taxable salary, after deducting the tax-free allowance, must exceed EUR 48,013 a year, or EUR 36,497 for employees under 30 with a qualifying master's degree. The allowance is capped at 30% of EUR 262,000, so EUR 78,600 a year. From 2027 the percentage falls to 27%, with transitional protection for people who already used the ruling in 2023.
Does the employer pay the health insurance contribution?
Yes. The income-related Zvw contribution of 6.10% on wages up to EUR 79,409 is paid by the employer and does not reduce net pay. You still pay the nominal premium for your own basic health insurance policy directly to the insurer.
Why is my first Dutch payslip different from the calculator?
Payroll applies the tax credits month by month through the wage tax tables, adds pension, travel allowances and any benefits in kind, and pays holiday allowance in one month. The annual result should be close; individual months are not. Your income tax return then settles the year.
Can I pay myself through a Dutch B.V. instead?
A director-shareholder with 5% or more is taxed on a customary salary of at least EUR 58,000 in 2026, with the rest taken as dividend in box 2. Whether that beats employment depends on profit, residence and how much you need to take out each year.