Dutch income tax rates for 2026
Wage tax and the national insurance contributions (volksverzekeringen) are withheld together as one loonheffing. For people under the state pension age the 2026 rates are:
| Taxable income | Rate |
|---|---|
| Up to €38,883 | 35.75% |
| €38,883 to €78,426 | 37.56% |
| Above €78,426 | 49.50% |
Tax credits, and the hidden 50% rate
Two credits are subtracted from the tax. The general tax credit (algemene heffingskorting) is €3,115, reduced by 6.398% of income above €29,736 until it disappears at €78,426. The labour tax credit (arbeidskorting) builds up with earnings to a maximum of €5,685 at €45,592, then falls by 6.51% of income above that until it reaches zero at €132,920.
Because both credits shrink as you earn more, the real rate on extra income between €45,592 and €78,426 is 37.56% + 6.398% + 6.51% = 50.47%, higher than the top rate. Above €78,426 the general credit is gone and the rate is 49.50% + 6.51% = 56.01% until €132,920, then 49.50%. The marginal-rate chart shows these steps.
A worked example
On €60,000 a year: tax is €38,883 × 35.75% + €21,117 × 37.56% = €21,832.22. The general credit is €3,115 − 6.398% × €30,264 = €1,178.71 and the labour credit €5,685 − 6.51% × €14,408 = €4,747.04. Tax after credits is €15,906.47, leaving €44,093.53 a year, €3,674.46 a month.
The 30% ruling for expats
Employees recruited from abroad with skills that are scarce in the Netherlands can receive 30% of their salary tax-free for up to five years, to cover the extra costs of living abroad. In 2026:
- Your taxable salary, after the tax-free part, must be at least €48,013, or €36,497 if you are under 30 with a master's degree.
- The tax-free part is capped at 30% of €262,000 (the public-sector pay norm), so at most €78,600 a year.
- From 2027 the percentage falls to 27%, with higher salary thresholds.
On €90,000, the ruling makes €27,000 tax-free. Taxable pay falls to €63,000, and take-home pay rises from €58,311.89 to €72,579.49, €14,267.60 a year more. The flip side: your pension build-up and some benefits are based on the lower taxable salary. Your employer must apply for the ruling, and it has to be in place from the start.
Holiday allowance and employer costs
Dutch employees receive holiday allowance of at least 8% of annual salary, usually paid in May or June. Job offers often quote a monthly salary without it, so check whether your yearly figure includes it; tick the box above to add it. Your employer also pays the health insurance contribution (Zvw, 6.10% on pay up to €79,409) and unemployment and disability premiums on top of your gross salary; they do not come out of your pay. Health insurance itself is a separate monthly premium you pay to your insurer.