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Dutch income tax has two bands — most employees pay 36,97% on the bulk of their salary
The Box 1 income tax system taxes the first €75.624 of taxable income at 36,97% and everything above at 49,50%. For a Dutch employee earning €55.000 gross, the entire taxable income falls within the lower band — but the effective rate is lower still after the arbeidskorting (employment credit) and other personal credits. The top 49,50% rate kicks in at a relatively modest threshold compared to most OECD peers, making Netherlands a moderate-to-high income tax environment above median salary.
Source: Belastingdienst 2026
The 19% corporate tax rate makes the Netherlands competitive for small and profitable companies
Dutch corporate tax (vennootschapsbelasting, VPB) applies at 19% on the first €200.000 of taxable profit. For founders, BV owners and small companies operating within this band, the Netherlands remains highly competitive versus the EU average of approximately 21-22%. Once profit exceeds €200.000, the rate jumps to 25,8% — creating a meaningful incentive to plan around the threshold for growing companies. The €200.000 boundary is unchanged from 2025.
Source: Belastingdienst — Vennootschapsbelasting 2026
The €385 eigen risico is the most directly felt healthcare cost for Dutch adults in 2026
The mandatory annual healthcare deductible applies before most basic insurance reimbursements begin. For adults who use insured care — GP referrals, specialist visits, physiotherapy, medical aids — the first €385 is paid out of pocket. GP consultations and maternity care are exempt. Households with chronically ill family members regularly exhaust the full deductible. The 2026 level is unchanged from 2025, providing planning certainty for households and HR departments.
Source: Zorginstituut Nederland 2026
Kinderbijslag amounts increase meaningfully as children grow older — relevant for long-term household budgeting
SVB child benefit scales by age group: €295,07/quarter for children aged 0-5, €358,27/quarter for 6-11 year olds, and €421,47/quarter for 12-17 year olds. Over an 18-year childhood, the cumulative difference between starting and ending rates is approximately €126/quarter per child. Families with multiple children across age brackets receive differentiated amounts. Kinderbijslag is universal (not income-tested) and is paid automatically after registration with SVB.
Source: SVB Kinderbijslag 2026
Inflation at 3,3% in 2025 has continued to erode purchasing power — 2026 planning must account for residual price pressure
CBS recorded 3,3% annual CPI inflation in 2025. While below the 2022-2023 peaks, 3,3% means cumulative purchasing power erosion since 2021 remains significant — approximately 15-20% across the five-year period. For salary negotiations, benefit indexation, rent benchmarking and cost-of-living comparisons, the 2025 CBS figure is the key anchor for 2026 planning. Wage agreements in 2026 that don't exceed 3,3% real-terms represent a pay cut in real purchasing power terms.
Source: CBS — Inflatie 2025
Netherlands Corporate Tax Rates 2026 (%)
Belastingdienst
Kinderbijslag Quarterly Amounts by Child Age Group 2026 (€)
SVB — Sociale Verzekeringsbank
Netherlands Box 1 Income Tax Rate vs Corporate Tax Rate 2026 (%)
Belastingdienst 2026
📋 Reference Data
Netherlands 2026 Income Tax — Box 1 Bands
Belastingdienst official 2026 inkomstenbelasting rates
| Tax band | Taxable income range | Rate | Who this applies to |
|---|---|---|---|
| Band 1 | €0 – €75.624 | 36,97% | Most employees, freelancers, pensioners |
| Band 2 | Above €75.624 | 49,50% | Higher earners, directors, senior professionals |
ⓘ Box 1 covers employment income, self-employment income and most pension income. The effective tax rate is lower than the marginal rate due to personal credits (heffingskortingen) including the algemene heffingskorting and arbeidskorting.
Netherlands 2026 Corporate Tax (VPB) Rates
Belastingdienst — Vennootschapsbelasting 2026
| Taxable profit band | VPB rate | Annual tax on profits at midpoint | Applies to |
|---|---|---|---|
| €0 – €200.000 | 19% | €19.000 on €100.000 profit | BV, NV and other Dutch corporate entities |
| Above €200.000 | 25,8% | €25.800 per additional €100.000 | All Dutch companies above the low-rate band |
ⓘ The 19% low rate has been extended from previous thresholds and represents one of the most favourable corporate tax environments in the EU for profitable small companies. Above €200.000, the blended effective rate exceeds 19% but depends on total profit level.
Netherlands 2026 Child Benefit (Kinderbijslag) by Age
SVB — Sociale Verzekeringsbank, Q1/Q2 2026 reference period
| Child age group | Quarterly amount | Annual equivalent | Administering body |
|---|---|---|---|
| Age 0–5 | €295,07 | ~€1.180 | SVB (Sociale Verzekeringsbank) |
| Age 6–11 | €358,27 | ~€1.433 | SVB (Sociale Verzekeringsbank) |
| Age 12–17 | €421,47 | ~€1.686 | SVB (Sociale Verzekeringsbank) |
ⓘ Kinderbijslag is paid four times per year (January, April, July, October). It is universal — not income-tested — and applies to all eligible parents registered in the Netherlands. Children living abroad may still be eligible under certain conditions.
Netherlands 2026 Key Tax & Benefit Reference Values
Belastingdienst, SVB, Rijksoverheid and CBS official 2026 sources
| Metric | 2026 value | Responsible institution | Confidence |
|---|---|---|---|
| Box 1 lower income tax rate | 36,97% | Belastingdienst | Official |
| Box 1 lower rate threshold | €75.624 | Belastingdienst | Official |
| Box 1 higher income tax rate | 49,50% | Belastingdienst | Official |
| Eigen risico (healthcare deductible) | €385 | Zorginstituut Nederland | Official |
| Corporate tax — low rate | 19% | Belastingdienst | Official |
| Corporate tax — main rate | 25,8% | Belastingdienst | Official |
| Kinderbijslag — age 0–5 | €295,07 / quarter | SVB | Official |
| Kinderbijslag — age 6–11 | €358,27 / quarter | SVB | Official |
| Kinderbijslag — age 12–17 | €421,47 / quarter | SVB | Official |
| Statutory minimum wage (bruto monthly) | €2.069,40 | Rijksoverheid | Official |
| CPI inflation 2025 | 3,3% | CBS | Official |
ⓘ All figures are sourced from the responsible Dutch government institution for the 2026 rule year. Amounts may differ slightly from earlier calendar year publications due to mid-year index adjustments.
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What is the Box 1 income tax rate on Dutch taxable income up to €75.624 in 2026?
🔬 Methodology & Sources
Data Sources and Verification
All figures on this page are sourced directly from the responsible Dutch government institutions for the 2026 rule year. Income tax rates (Box 1) are taken from Belastingdienst official publications. Kinderbijslag amounts are sourced from SVB quarterly published rates. The eigen risico is set annually by the Dutch government and confirmed via Zorginstituut Nederland. Corporate tax rates are taken from Belastingdienst vennootschapsbelasting publications. Inflation data is sourced from CBS (Centraal Bureau voor de Statistiek). Minimum wage figures are from Rijksoverheid official announcements.
Formula
Effective income tax rate = sum of (income within each band × band rate) ÷ total gross income | Corporate tax = (min(profit, €200,000) × 0.19) + (max(0, profit − €200,000) × 0.258)
CitationBelastingdienst, SVB, Rijksoverheid, Zorginstituut Nederland and CBS official 2026 publications, reviewed June 2026.
How Dutch Income Tax Works (Box 1)
Dutch personal income tax operates through a 'box' system. Box 1 (work and home) covers employment income, self-employment income, freelance income and most pension income. The 2026 Box 1 rates are 36,97% up to €75.624 taxable income and 49,50% above that. Taxable income is gross income minus personal deductions (hypotheekrenteaftrek, lijfrentepremies etc.) and the standard deductions. The effective rate is significantly lower than the marginal rate because of the heffingskortingen system — credits that reduce the actual tax due. Box 2 covers income from a substantial shareholding (aanmerkelijk belang). Box 3 covers savings and investments through a deemed return system.
Formula
Taxable Box 1 income = gross income − deductible items | Income tax due = (min(income, €75,624) × 36.97%) + (max(0, income − €75,624) × 49.50%) − heffingskortingen
CitationWet inkomstenbelasting 2001; Belastingdienst Tarieven en schijven inkomstenbelasting 2026.
❓ Frequently Asked Questions
In 2026, Dutch Box 1 income tax has two bands. The lower band taxes income up to €75.624 at 36,97%. The higher band taxes income above €75.624 at 49,50%. These are marginal rates — only the income within each band is taxed at that rate. Your effective tax rate is always lower than the marginal rate, because personal tax credits (heffingskortingen) reduce the final amount due. The most important credits are the algemene heffingskorting (general credit) and the arbeidskorting (employment credit).
The eigen risico is €385 for 2026. This is the mandatory annual healthcare deductible that all Dutch adults must pay out of pocket before their basic health insurance (basisverzekering) reimburses costs. The €385 applies per adult, per year. GP consultations (huisarts) are exempt and do not count towards the deductible. Specialist referrals, physiotherapy, hospital treatment, most medicines and medical aids all count towards the deductible. Adults with frequent healthcare use typically exhaust the full €385 early in the year.
Kinderbijslag is administered and paid by SVB — the Sociale Verzekeringsbank. It is a universal child benefit, meaning it is not income-tested: all eligible parents in the Netherlands receive it regardless of household income. Payments are made quarterly: January, April, July and October. The quarterly amount depends on the child's age group. For a child aged 0-5, the Q1/Q2 2026 rate is €295,07 per quarter. For 6-11 year olds it is €358,27, and for 12-17 year olds €421,47. Parents must register their child with the SVB.
The Dutch corporate tax (vennootschapsbelasting, VPB) low rate is 19% on taxable profit up to €200.000. This applies to BVs, NVs and other Dutch corporate entities. For a company with €150.000 taxable profit, the entire profit is taxed at 19% — a total tax bill of €28.500. This low rate has been maintained since 2023 and remains unchanged for 2026. The 19% band covers the large majority of Dutch small and mid-sized companies operating as BVs.
The Dutch VPB two-band structure creates a deliberate bifurcation: profitable smaller companies benefit from the lower 19% rate, while larger profits are taxed at 25,8%. This design incentivises SME formation and keeps the Netherlands competitive for founder-led businesses. Once a company's profit exceeds €200.000, only the excess is taxed at 25,8% — not the entire profit. A company with €300.000 taxable profit pays: (€200.000 × 19%) + (€100.000 × 25,8%) = €38.000 + €25.800 = €63.800 total VPB.
CBS recorded 3,3% annual CPI inflation for 2025. This figure is directly relevant for 2026 planning in several ways: (1) Collective labour agreements (CAOs) negotiated in 2026 that offer below 3,3% nominal increases represent a real-terms pay cut. (2) Benefit indexation, including AOW (state pension) and various allowances, is linked to wage and price developments — the 2025 CBS figure feeds into 2026 adjustments. (3) Rent indexation under Dutch housing law references CPI inflation, making the CBS figure a landlord benchmark. (4) Budget modelling for businesses needs to account for salary cost increases exceeding inflation to retain staff.
This page focuses on the core Box 1 reference values most relevant for employed individuals, freelancers, founders and small companies. Box 2 covers dividend income and capital gains from a substantial shareholding (aanmerkelijk belang, defined as 5% or more ownership). The 2026 Box 2 rates are 24,5% on income up to €67.000 and 33% above that threshold. Box 3 covers savings and investments taxed on a deemed return basis rather than actual returns — a system undergoing reform following Dutch court rulings. See the dedicated income tax rates page for full Box 2 and Box 3 detail.
The Dutch statutory minimum wage (wettelijk minimumloon, WML) for 2026 is approximately €2.069,40 gross per month for full-time workers aged 21 and over. This converts to approximately €24.833 gross annually. The minimum wage is indexed twice per year (January 1 and July 1) against the CBS wage index. The 2026 figure represents a significant increase from pre-2022 levels as the Netherlands has consistently increased the WML as part of purchasing power policy. Minimum wage rules apply to employees — not to self-employed or ZZP contractors.
Freelancers and ZZP (zelfstandige zonder personeel) workers in the Netherlands are taxed under Box 1 on their business profit — not under corporate tax. The Box 1 rates (36,97% / 49,50%) therefore apply to their net business income. ZZP workers benefit from the zelfstandigenaftrek (self-employment deduction) and MKB-winstvrijstelling (SME profit exemption), which reduce taxable profit significantly. Crucially, ZZP workers are responsible for their own healthcare insurance and must budget for the full €385 eigen risico as there is no employer contribution. They also do not automatically receive kinderbijslag from an employer — they must register with SVB separately.
A founder operating through a BV (besloten vennootschap) pays corporate tax at the VPB rate on company profit, then pays themselves a directeur-grootaandeelhouder (DGA) salary subject to Box 1 income tax at 36,97% or 49,50%. Dividends from the BV are subject to Box 2 tax. The most common planning question is whether to retain profit in the BV at 19% VPB or distribute it immediately at Box 2 rates. With the 19% VPB rate being substantially lower than the 36,97% Box 1 rate, profit retention in the BV is often tax-efficient for founders below the €200.000 profit threshold.
Sources & References
Data sourced from official institutional publications. Results are for informational purposes only. Last reviewed Jun 2026.
Data Disclaimer
This page is for informational purposes only. Actual tax outcomes depend on personal income, household composition, available deductions, eligibility for allowances, employment structure and official Belastingdienst assessment. Always consult a registered Dutch tax adviser (belastingadviseur) for personalised advice.
This page is for informational purposes only. Actual tax outcomes depend on personal income, household composition, available deductions, eligibility for allowances, employment structure and official Belastingdienst assessment. Always consult a registered Dutch tax adviser (belastingadviseur) for personalised advice.