Question 1

How much tax do I pay on my salary in the Netherlands?

Accepted Answer

In 2026, Dutch income tax (Box 1) has three brackets: 35.75% on income up to €38,883 (which includes 27.65% national insurance), 37.56% on income between €38,883 and €78,426, and 49.5% above €78,426. You also receive tax credits: the general tax credit (algemene heffingskorting) of up to €3,115 and the labour tax credit (arbeidskorting) of up to €5,685.

Question 2

What is the 30% ruling in the Netherlands?

Accepted Answer

The 30% ruling (expatregeling) allows qualifying international employees to receive 30% of their gross salary tax-free as reimbursement for extraterritorial costs. To qualify in 2026, your taxable salary must be at least €48,013 per year (or €36,497 for employees under 30 with a master's degree). The ruling significantly reduces your effective tax rate.

Question 3

What is vakantiegeld (holiday allowance) in the Netherlands?

Accepted Answer

Vakantiegeld (holiday allowance) is a mandatory annual payment of at least 8% of your gross annual salary, typically paid in May or June. It is taxed separately at the bijzonder tarief (special rate), which depends on your annual income bracket. Our calculator shows the exact net amount you will receive after tax.

Question 4

What are the Dutch income tax brackets for 2026?

Accepted Answer

The 2026 Dutch Box 1 tax brackets are: 8.1% income tax (plus 27.65% national insurance = 35.75% combined) on income up to €38,883; 37.56% income tax on income from €38,883 to €78,426; and 49.5% income tax on income above €78,426. The national insurance cap applies at €38,883.

Question 5

How is net salary calculated in the Netherlands?

Accepted Answer

Dutch net salary = gross salary minus income tax (loonbelasting), minus national insurance contributions (volksverzekeringen: AOW, ANW, WLZ), plus tax credits (heffingskortingen), minus pension contributions, minus Gediff WGA premium. The result depends on your gross income, age, employment type, 30% ruling status, and deductions.

Question 6

How does the labour tax credit (arbeidskorting) work in 2026?

Accepted Answer

The labour tax credit (arbeidskorting) in 2026 is up to €5,685 and reduces the amount of tax you owe. It phases in up to income of €45,593 and then phases out for incomes above that level, reaching zero at €129,078. The general tax credit (algemene heffingskorting) is up to €3,115 and phases out above €29,736.