How it works
In the Netherlands a salary is taxed in box 1 (income from work and home). The first bracket combines two things: income tax (8.10%) and the national insurance premiums, the premie volksverzekeringen (27.65%: AOW pension, Anw survivors, Wlz long-term care). That is why the first bracket rate is 35.75% in 2026. There are no separate employee social-security contributions on top: the premiums are inside the bracket rates.
Box 1 rates 2026
- Up to EUR 38,883: 35.75% (under AOW age) or 17.85% (AOW age reached).
- EUR 38,883 to EUR 78,426: 37.56%.
- Above EUR 78,426: 49.50%.
Tax credits
Two credits are subtracted from the tax. The general tax credit is EUR 3,115 up to a taxable income of EUR 29,736 and falls by 6.398% of every euro above that, reaching zero at EUR 78,426. The labour tax credit builds up to a maximum of EUR 5,685 at EUR 45,592 (8.324% of income to EUR 11,965, then 31.009%, then 1.95%) and then falls by 6.51% per euro, reaching zero at EUR 132,920. The tax line cannot go below zero.
Worked example: EUR 50,000 gross, under AOW age
bracket tax - general credit - labour credit
- Bracket tax: 38,883 x 35.75% + (50,000 - 38,883) x 37.56% = EUR 18,076
- General credit: 3,115 - 6.398% x (50,000 - 29,736) = EUR 1,819
- Labour credit: 5,685 - 6.51% x (50,000 - 45,592) = EUR 5,398
- Tax and premiums = 18,076 - 1,819 - 5,398 = EUR 10,860, so net = EUR 39,140 per year (EUR 3,262 per month)
A second example at EUR 85,000: bracket tax EUR 32,007, general credit 0, labour credit EUR 3,120, so EUR 28,888 of tax and premiums and a net of EUR 56,112 per year.
Holiday allowance and the 8% rule
Dutch employees normally receive 8% holiday allowance (vakantiegeld) on top of the monthly salary. It is taxed like normal pay, so enter your gross including holiday allowance (for example EUR 3,000 x 12 x 1.08 = EUR 38,880 per year). The page divides the annual result by 12 for monthly display, which is the average; your actual May payslip will show a lower net share because the allowance is taxed at your top bracket.
What this calculator leaves out
The 30% ruling for expats, pension contributions, the health-insurance premium (zorgpremie) and healthcare allowance, company-car additions, mortgage interest relief and other deductions are not included. The employer-paid Zvw contribution does not reduce your pay. Credits are limited to what the tax can absorb (very low incomes are slightly approximated), and the tax-free travel allowance and one-off payments taxed with the special rate are not modelled.