Dutch Income Tax Brackets 2025: Complete Guide
The Netherlands uses a progressive income tax system with multiple brackets. Here's everything you need to know about the 2025 tax rates.
2025 Tax Brackets
Box 1 Income Tax Rates
- €0 - €38,441: 36.93% (including national insurance contributions)
- €38,441 - €76,817: 37.07%
- Above €76,817: 49.50%
What's Included in Box 1
Box 1 covers income from employment, benefits, and home ownership, including:
- Salary and wages
- Holiday allowance
- Pension benefits
- Unemployment benefits
- Rental income from your main residence
Practical Examples
Example 1: €45,000 Annual Salary
- First €38,441 taxed at 36.93% = €14,194
- Remaining €6,559 taxed at 37.07% = €2,431
- Total tax: €16,625
- Net income: €28,375
Example 2: €85,000 Annual Salary
- First €38,441 taxed at 36.93% = €14,194
- Next €38,376 taxed at 37.07% = €14,226
- Remaining €8,183 taxed at 49.50% = €4,051
- Total tax: €32,471
- Net income: €52,529
Key Changes for 2025
- Slight adjustment to bracket thresholds
- Continuation of the three-bracket system
- No major rate changes from 2024
Tax Credits and Deductions
Don't forget about available tax credits that reduce your final tax bill:
- General tax credit (algemene heffingskorting)
- Working tax credit (arbeidskorting)
- Single parent credit if applicable
Use our interactive tax calculator to see your exact breakdown based on your specific situation.
