How Salary Tax Is Calculated by Country
Netherlands 2026
The Netherlands uses a two-bracket Box 1 system for employment income. Income up to €75.518 is taxed at 36.97%. Income above that is taxed at 49.5%. These rates include both income tax and national insurance contributions (premies volksverzekeringen). Two key credits reduce the actual tax paid: the general tax credit (algemene heffingskorting) of up to €3.362 and the labour tax credit (arbeidskorting) of up to €5.158. Both credits phase out at higher income levels, which creates effective marginal rates above the headline rates for middle-income earners.
Belgium 2026
Belgium has five income tax brackets: 25% up to €15.200, 40% from €15.200 to €26.830, 45% from €26.830 to €46.440, and 50% above €46.440. A tax-free allowance of approximately €10.160 applies. Employees also pay social security contributions of 13.07% on gross salary. A communal tax surcharge of approximately 7% is applied on top of federal income tax. The effective rate for most employees is significantly lower than the top rate.
Germany 2026
Germany uses a progressive formula rather than fixed brackets. Income up to €11.604 (Grundfreibetrag) is tax-free. Above that, rates gradually increase from 14% to 42% on income up to €66.761, and remain at 42% up to €277.826. Income above €277.826 is taxed at 45%. Social security contributions cover pension (9.3%), health insurance (7.3%), unemployment (1.3%), and long-term care (1.525%), all as employee contributions. Church tax of 8 to 9% on income tax applies for registered church members.
United Kingdom 2026
The personal allowance is £12.570. Income from £12.571 to £50.270 is taxed at 20% (basic rate). Income from £50.271 to £125.140 is taxed at 40% (higher rate). Income above £125.140 is taxed at 45% (additional rate). The personal allowance reduces by £1 for every £2 earned above £100.000 and is fully withdrawn at £125.140. National Insurance contributions are 8% on earnings between £12.570 and £50.270, and 2% above £50.270.
United States 2026
Federal income tax uses seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The standard deduction for single filers is $14.600 and $29.200 for married filing jointly. FICA contributions include Social Security at 6.2% on earnings up to $168.600 and Medicare at 1.45% on all earnings. State income tax varies from 0% in states like Texas and Florida to over 13% in California.
Frequently Asked Questions
What is the difference between gross and net salary?+
Gross salary is your total pay before any deductions. Net salary is what arrives in your bank account after income tax, social security contributions, and any other mandatory deductions. The difference between gross and net varies significantly by country. In the Netherlands and Belgium, the gap is typically larger than in the UK or US due to higher social security contribution rates.
What is an effective tax rate vs a marginal tax rate?+
Your marginal tax rate is the rate applied to the last unit of income you earn. Your effective tax rate is your total tax as a percentage of your total gross income. Because most countries use progressive brackets, your effective rate is always lower than your marginal rate. For example, a Dutch employee earning €60.000 might have a marginal rate of 49.5% on earnings above €75.518, but an effective rate closer to 30% when tax credits and the lower bracket are factored in.
What is the 30% ruling in the Netherlands?+
The 30% ruling is a Dutch tax benefit for international employees recruited from abroad. It allows qualifying employees to receive up to 30% of their salary tax-free as a reimbursement for extra costs of living in the Netherlands. The ruling applies for a maximum of 5 years. To qualify, the employee must be recruited from abroad, earn above a salary threshold, and have specific expertise that is scarce in the Dutch labour market.
How does the German Steuerklasse affect take-home pay?+
Germany assigns all employees a tax class (Steuerklasse) from 1 to 6 that determines how much tax is withheld from each paycheck. Class 1 is for single employees. Class 3 applies to the higher earner in a married couple and results in significantly less withholding, as more of the couple's combined allowances are applied to this income. Class 4 splits the allowances equally between spouses. The total tax owed at year-end is the same regardless of class but the monthly take-home amount differs.