Netherlands Income Tax Calculator 2026
Calculate your Dutch taxes: Loonbelasting + Social Contributions (AOW, WLZ) included
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* Rates include income tax + social contributions (AOW, ANW, WLZ)
Complete Guide to Dutch Taxation 2026
Why use this Dutch tax simulator? The Netherlands offers the famous 30% ruling that can exempt 30% of your salary from tax for up to 5 years as a skilled migrant. This simulator calculates both standard taxation and the 30% ruling scenario, including Box 1 progressive rates and mandatory social insurance premiums (volksverzekeringen) that are integrated into the income tax brackets.
The Netherlands has a unique tax system in Europe where social contributions are integrated directly into the income tax brackets for employment income (Box 1). This system simplifies understanding of the actual tax burden but may seem high at first glance.
The 3 Box System
The distinctive feature of the Dutch tax system is its division into three "boxes" (categories) that are taxed separately:
Box 1 - Work and Home
36.97% - 49.50%
Salaries, pensions, business income, rental value of own home
Box 2 - Substantial Interest
24.5% - 33%
Dividends and capital gains from >5% shareholdings
Box 3 - Wealth
~32% on deemed return
Savings, investments, real estate (except primary residence)
Box 1: Tax Brackets 2026
For employment income and similar, the combined rates (tax + social contributions) are:
- EUR 0 - 75,518: 36.97% (including 27.65% social contributions)
- Above EUR 75,518: 49.50% (pure tax, no additional social contributions)
Note: People aged 65+ pay a reduced rate in the first bracket (around 19%) as they no longer contribute to AOW.
Integrated Social Contributions (Volksverzekeringen)
Dutch social contributions are unique because they are integrated into the first bracket tax rate:
| Contribution | Rate 2026 | Description |
|---|---|---|
| AOW (Algemene Ouderdomswet) | 17.90% | Basic state pension (from age 67) |
| ANW (Algemene nabestaandenwet) | 0.10% | Survivors insurance (widow/widower) |
| WLZ (Wet langdurige zorg) | 9.65% | Long-term care insurance |
| Total Volksverzekeringen | 27.65% | Included in the 36.97% |
The pure income tax in the first bracket is only 36.97% - 27.65% = 9.32%
Separate Employer Contributions (Werknemersverzekeringen)
In addition to contributions included in the tax, employers pay additional contributions:
| Contribution | Rate 2026 | Description |
|---|---|---|
| WW (Werkloosheidswet) | 2.64% - 7.64% | Unemployment insurance |
| ZVW (Zorgverzekeringswet) | 6.57% | Basic health insurance |
| WIA/WAO | ~7.5% | Disability insurance |
| Total Employer | ~18-20% | Varies by sector |
30% Ruling: Tax Benefit for Expats
The 30% ruling is one of the most advantageous expat tax regimes in the world:
Eligibility Requirements
- Must be recruited from abroad (>150 km from Dutch border)
- Must have specific expertise that is scarce in the Netherlands
- Minimum salary: EUR 46,107 (or EUR 35,048 if under 30 with Master's degree)
- Must not have lived in the Netherlands in the previous 25 months
Benefits of the 30% Ruling
- 30% of gross salary tax-free (considered as expense reimbursement)
- Duration: maximum 5 years (reduced since 2024, was 8 years before)
- Option for "partial non-resident" tax status on Box 2 and 3
- Simplified foreign driving license exchange
Example: EUR 80,000 Salary with 30% Ruling
- Taxable base: 80,000 x 70% = EUR 56,000
- EUR 24,000 tax-free (considered as expenses)
- Estimated tax savings: ~EUR 9,000/year
Hypotheekrenteaftrek: Mortgage Interest Deduction
The Netherlands offers a very generous mortgage interest deduction (Hypotheekrenteaftrek) for purchasing a primary residence:
- Mortgage interest is deductible from taxable income
- Maximum deduction rate: 36.97% (gradually reduced)
- Maximum duration: 30 years
- Condition: the loan must be repaid (no "interest-only" loans since 2013)
- Deemed rental value (eigenwoningforfait) partially offset
Heffingskortingen: Tax Credits
The Netherlands offers several tax credits that directly reduce tax owed:
Algemene heffingskorting
General credit: ~EUR 3,362 max, decreasing with income (0 from ~EUR 75,000)
Arbeidskorting
Employment credit: ~EUR 5,532 max for employment income, decreasing
Inkomensafhankelijke combinatiekorting
Credit for working parents with children under 12
Ouderenkorting
Credit for people aged 65 and over
Box 3: Wealth Taxation
The wealth taxation system (Box 3) is unique and currently being reformed:
- Exemption: EUR 57,000 per person (EUR 114,000 for couples) tax-free
- Deemed return: the tax authorities assume a variable return based on asset composition
- Rate: 32% on the deemed return (not on actual wealth)
- 2027 reform: taxation on actual gains planned
Mandatory Health Insurance (Zorgverzekering)
In addition to taxes, all residents must subscribe to private health insurance:
- Monthly premium: ~EUR 140-160/month (basic coverage)
- Mandatory deductible: EUR 385/year (eigen risico)
- Zorgtoeslag: subsidy for low incomes (up to ~EUR 115/month)
France vs Netherlands Comparison
| Criteria | France | Netherlands |
|---|---|---|
| EUR 60,000 gross salary | ~EUR 42,000 net | ~EUR 40,500 net |
| Top marginal rate | 45% | 49.50% |
| Employee contributions | ~22% (separate) | Included in tax |
| Employer contributions | ~42% | ~18-20% |
| Expat benefit | Impatriate regime (30%) | 30% ruling (5 years) |
| Mortgage interest deduction | No | Yes (primary residence) |
| Wealth tax | IFI (>EUR 1.3M) | Box 3 (>EUR 57k) |
| Health insurance | Social security (included) | Private (~EUR 150/month) |
Key Dates and Tax Filing
- March 1: Tax return (aangifte) period opens
- May 1: Deadline for online tax return submission
- DigiD: Digital ID mandatory for filing
- Voorlopige aanslag: Monthly advance payments possible
Official Sources
- Belastingdienst: belastingdienst.nl - Dutch Tax Authority
- SVB: svb.nl - Social Insurance Bank
- UWV: uwv.nl - Unemployment and Disability Insurance Agency
- Government.nl: government.nl - Official information in English
The Netherlands attracts many expats thanks to its favourable 30% ruling tax regime. Compare with other nearby European economic hubs.