What the law says
The Dutch tax year is the calendar year, and the figures below are the 2026 rules as the calculator models them. Residents are taxed on worldwide income, and the rules for people who move to the Netherlands are the same box 1 system, with the 30% ruling as an extra for some new arrivals. Your employer withholds tax from each payslip and you can file an annual return with the Belastingdienst, the Dutch tax authority.
Box 1 rates and national insurance
Wages fall under box 1. For people below the state pension age, the rates in the first two bands already include national insurance premiums (for the state pension, survivors' benefits and long-term care), so there is no separate social security deduction. The tax credits below are then subtracted from the result.
| Taxable income | Rate |
|---|
| €0 to €38,883 | 35.75% |
|---|
| €38,883 to €78,426 | 37.56% |
|---|
| Over €78,426 | 49.5% |
|---|
Tax credits
Two credits reduce the tax you owe, and both fade as income rises. The general tax credit (algemene heffingskorting) is up to €3,115 for income up to €29,736 and reduces gradually until it reaches zero at €78,426. The labour tax credit (arbeidskorting) builds up with earnings to a maximum of about €5,685 at €45,592, then falls to zero at €132,920. The calculator builds both into the tax figure, and its detail shows them as lines inside the tax.
Because the credits fade in the middle of the income range, your effective marginal rate there is higher than the headline 37.56%.
Holiday allowance
Employees are entitled to a holiday allowance (vakantiegeld) of at least 8% of salary, usually paid out once a year in May or June. It is taxed like ordinary pay. The calculator adds it on top of the salary you enter and taxes it, so the take-home figure covers salary plus holiday allowance. If your contract says the salary already includes holiday allowance, switch the toggle off in the calculator.
The 30% ruling
The 30% ruling lets your employer pay up to 30% of your pay as a tax-free allowance for the extra costs of working abroad. It is meant for people recruited from outside the Netherlands for specific expertise that is scarce in the Dutch labour market. The main conditions are:
- You were recruited from abroad, or sent over by a foreign employer, and you lived more than 150 km from the Dutch border for more than 16 of the 24 months before you started.
- Your taxable salary, excluding the allowance, meets the salary norm. The calculator uses €48,013, or €36,497 for someone under 30 with a master's degree.
- You and your employer apply together, and the ruling can last up to five years.
As modelled, the tax-free allowance is the smallest of 30% of your total pay, your pay minus the salary norm, and €78,600. The 30% rate applies for 2026. It is due to fall to 27% from 1 January 2027, so confirm the current conditions and any transitional rules with the Belastingdienst.
How to pay less tax, legally
These are mainstream, legal ways to keep more of your pay in the Netherlands. Which ones apply depends on how you were hired.
Apply for the 30% ruling with your employer
Suits: people recruited from abroad who meet the 150 km, 16 of 24 months and salary norm conditions. The ruling is requested by you and your employer together. Applying within four months of your start date lets it run from the day you started.
Caveat: it lasts up to five years, the rate is due to fall to 27% from 2027, and the conditions can change, so check the current rules with the Belastingdienst before counting on it in an offer.
Check the young master's norm
Suits: graduates under 30 with a master's degree whose salary is below the standard norm. They can qualify at the lower €36,497 norm, as in the last example.
Caveat: the degree and its level must meet the legal requirements. Confirm that your qualification counts before you accept a salary based on it.
Use an employer pension scheme
Suits: employees whose employer runs a pension scheme. Your own contribution is deducted before tax, so you save tax at your top rate. The calculator has an input for your pension share.
Caveat: pension contributions reduce take-home pay now and are a long-term saving. Schemes that start above a threshold take less than the percentage you enter.
Frequently asked questions
How much tax do I pay on a €60,000 salary in the Netherlands?
A resident without the 30% ruling pays about €18,329 in box 1 tax and national insurance on €64,800 of pay, which is the €60,000 salary plus the 8% holiday allowance. You keep about €46,471. Try your own figure in the Global Income Tax Calculator.
What is the 30% ruling and who qualifies?
It is a tax-free allowance of up to 30% of your pay for the extra costs of working away from home. You qualify if a Dutch employer recruits you from abroad, you lived more than 150 km from the Dutch border for more than 16 of the 24 months before starting, and your salary meets the salary norm (€48,013, or €36,497 for under-30s with a master's). It lasts up to five years and you and your employer apply together.
Why is 8% holiday allowance paid on top of my salary?
Dutch law gives employees a holiday allowance of at least 8% of salary, usually paid out once a year in May or June. It is taxed as ordinary pay. The calculator adds it to the salary you enter. A monthly payslip does not show it every month, so over a year your pay is 8% higher than twelve payslips suggest. Check whether your contract quotes the salary with or without holiday allowance.
Why is my income tax and national insurance one number in the Netherlands?
Box 1 combines income tax and national insurance premiums into one rate for people below the state pension age. Other countries often show them as separate lines, so a Dutch payslip can look as if it has no social security. The calculator therefore shows a single line, with the two tax credits inside it.
Why does the Dutch marginal rate look higher than the tax bands?
The two tax credits fade as income rises. In the middle of the range both are shrinking, so each extra euro is taxed at 37.56% and also loses some credit. In the €60,000 example the marginal rate is 46.5%, compared with a headline rate of 37.56%.
Does the salary norm include the holiday allowance?
In the calculator, yes: total pay with the holiday allowance is tested against the norm, and the allowance can never take taxable pay below the norm. The legal test is on your taxable salary, so confirm with your employer and the Belastingdienst how your own pay is counted.