Local Government Series

Local & Municipal Taxes in the Netherlands

Discover how property taxes, road taxes, municipal levies, and water board charges fund local services and infrastructure

Updated for 2025
10 min read

Four Levels of Government

The Netherlands has a unique four-level government structure. Each level has specific responsibilities and funding sources, creating a comprehensive system of public services.

National Government

Income tax, VAT, and defense - the big picture funding

Income Tax
VAT
Defense Budget
Justice System

Provincial Government

Road infrastructure, environment, and regional coordination

Road Tax (MRB)
Regional Roads
Environmental Policy
Public Transport

Municipal Government

Local services, waste collection, parks, and social services

Property Tax (OZB)
Waste Collection
Local Parks
Social Services

Water Boards

Water management, flood protection, and water quality

Water Board Levies
Dike Maintenance
Water Quality
Flood Protection

Types of Local Taxes

Property Tax (OZB)

Annual tax on property ownership, calculated based on WOZ value

Typical Rate

0.1% - 0.4% of WOZ value

Paid By

Property owners

Funds

Local infrastructure, public lighting, municipal services

Road Tax (MRB)

Provincial tax on vehicle ownership, varies by weight and emissions

Typical Rate

€40 - €200+ per quarter

Paid By

Vehicle owners

Funds

Regional roads, environmental programs, public transport

Municipal Levies

Fees for waste collection, sewage, and other municipal services

Typical Rate

€200 - €800 per year

Paid By

Residents and businesses

Funds

Waste collection, parks, libraries, local social services

Water Boards - Uniquely Dutch

Levies for water management by the 21 Dutch water boards

Typical Rate

€100 - €500 per year

Paid By

All residents and businesses

Funds

Dike maintenance, water quality, flood protection, water treatment

Water Boards: A Dutch Innovation

Water boards are the oldest democratic institutions in the Netherlands, dating back to 1196. These 21 regional authorities manage water levels, water quality, and flood protection across the country.

Fun fact: You vote separately for water board representatives every 4 years!

Calculate Your Local Tax Burden

See exactly how much you pay in local and municipal taxes with our detailed calculator.