Dutch Tax Brackets Explained (2026)
A clear breakdown of the Netherlands' Box 1 income tax brackets, rates, and how social security premiums are included. Updated for the 2026 tax year.
The Netherlands uses a progressive tax system for employment income, which falls under Box 1. This means higher income is taxed at higher rates, applied in steps called schijven (brackets).
Your income flows through each bracket sequentially — you do not pay the highest rate on your entire income, only on the portion that falls within that bracket. This is a crucial distinction that many expats misunderstand.
- Box 1: Income from employment and home ownership (this guide)
- Box 2: Income from substantial shareholding (5%+ ownership)
- Box 3: Income from savings and investments (see Box 3 guide)
2026 Tax Bracket Rates
For the 2026 tax year, Box 1 has three brackets:
| Bracket | Taxable Income Range | Rate |
|---|---|---|
| Bracket 1 | €0 – €38,883 | 35.75% |
| Bracket 2 | €38,883 – €78,426 | 37.56% |
| Bracket 3 | Above €78,426 | 49.50% |
Social Security in Bracket 1
The Bracket 1 rate of 35.75% is actually a combination of:
- Income tax: ~8.10%
- Social security premiums (volksverzekeringen): ~27.65%
- AOW (state pension): 17.90%
- Anw (survivors): 0.10%
- Wlz (long-term care): 9.65%
Social security premiums are only charged on income in Bracket 1. Once your income exceeds €38,883, the remaining income is taxed at the pure income tax rates (Brackets 2 and 3).
Example Calculations
Example 1: Salary of €50,000
| Bracket | Income in Bracket | Rate | Tax |
|---|---|---|---|
| Bracket 1 | €38,883 | 35.75% | €13,901 |
| Bracket 2 | €11,117 | 37.56% | €4,175 |
| Gross tax | €18,076 |
After applying tax credits (heffingskortingen), the actual tax paid will be lower. Use our tax calculator for the exact net figure.
Example 2: Salary of €100,000
| Bracket | Income in Bracket | Rate | Tax |
|---|---|---|---|
| Bracket 1 | €38,883 | 35.75% | €13,901 |
| Bracket 2 | €39,543 | 37.56% | €14,851 |
| Bracket 3 | €21,574 | 49.50% | €10,679 |
| Gross tax | €39,431 |
Notice that the effective tax rate (weighted average) is approximately 39.4%, not 49.5% — because only €21,574 is taxed at the top rate.
Comparison with 2025 Rates
| Bracket | 2025 Rate | 2025 Range | 2026 Rate | 2026 Range |
|---|---|---|---|---|
| Bracket 1 | 35.82% | Up to €38,441 | 35.75% | Up to €38,883 |
| Bracket 2 | 37.48% | €38,441 – €76,817 | 37.56% | €38,883 – €78,426 |
| Bracket 3 | 49.50% | Above €76,817 | 49.50% | Above €78,426 |
Key changes for 2026: Bracket 1 went down slightly (35.82% → 35.75%), but Bracket 2 went up marginally (37.48% → 37.56%). The bracket limits increased, meaning more income is taxed at lower rates. The top rate of 49.50% remains unchanged.
How 30% Ruling Affects Brackets
The 30% ruling reduces your taxable income before brackets are applied. This has a dramatic effect:
- Without ruling: €80,000 salary → taxed across all 3 brackets
- With ruling: €80,000 salary → taxable income of €56,000 → stays within Brackets 1 and 2
The ruling shifts income out of the highest bracket, which is where the biggest savings come from. This is why the 30% ruling becomes more valuable at higher salaries.
Frequently Asked Questions
Are these brackets the same for everyone?
Yes. The Box 1 brackets apply equally to all tax residents. However, the effective rate can differ based on whether you pay social security premiums, which affects Bracket 1.
Does the 13th month (holiday allowance) push me into a higher bracket?
Tax brackets are based on your total annual income, including holiday allowance (vakantiegeld). If your total annual income exceeds a bracket limit, the excess is taxed at the next bracket rate. So yes, the 13th month counts — but only the portion above the bracket limit is taxed higher.
Are bonuses taxed at the top bracket rate?
Employers often withhold tax on bonuses at a higher rate for payroll simplicity. However, your final tax is calculated on total annual income. Any over-withholding is refunded when you file your tax return.
How do tax brackets interact with heffingskortingen?
Heffingskortingen (tax credits) are subtracted from your gross tax after bracket calculations. They effectively reduce the amount of tax you owe, making the actual effective rate lower than what the bracket table suggests.