An annual salary of €120,000 is in the top income tier in the Netherlands, with a large share taxed at 49.50%. At this level, tax planning and compensation structure can materially change net outcomes.
Income ranking and median based on CBS income distribution 2023
With a gross salary of €120,000/year in 2025, you receive €71,062 net. This results in an effective tax rate of 40.8%.
With a gross income of €120,000/year, the effective tax rate is 40.8%. The marginal rate (tax on additional income) is 49.5%.
An income of €120,000/year falls into tax brackets 1 and 2 and 3. In 2025, the Netherlands has three brackets: 35.82% up to €38,441, 37.48% up to €76,817, and 49.50% above.
With the 30% ruling, you would receive €91,226 net, which is €20,164 more than without the ruling. The 30% ruling is available for expats who meet the eligibility criteria.