Dutch tax brackets 2026: box 1 rates and a worked example
The 2026 box 1 income tax brackets and rates in the Netherlands, before and after state pension age, plus a worked example on a €50,000 income.
Updated:
Dutch net salary calculator 2026
Dutch tax brackets 2026
On income from work and your home (box 1), you pay income tax plus national insurance contributions. The rate rises in brackets: each slice of your income is taxed at the rate of the bracket it falls into. So you never pay the top rate on your whole income.
2026 rates if you are below state pension (AOW) age
- Bracket 1, taxable income up to and including €38,883: 35.75%
- Bracket 2, over €38,883 up to and including €78,426: 37.56%
- Bracket 3, over €78,426: 49.50%
The 35.75% in bracket 1 is made up of 8.10% income tax and 27.65% national insurance contributions.
2026 rates if you have reached state pension (AOW) age
Once you reach AOW age, you stop paying the AOW (state pension) contribution, so the bracket 1 rate is lower.
- Born before 1 January 1946: bracket 1 up to and including €41,123 is 17.85%, bracket 2 (up to and including €78,426) is 37.56% and bracket 3 is 49.50%.
- Reaching AOW age during 2026? Your bracket 1 rate (up to and including €38,883) depends on the month you become entitled to AOW: from 17.85% if it is January to 34.25% if it is December. Brackets 2 and 3 stay at 37.56% and 49.50%.
For people born on or after 1 January 1946 who are above AOW age for the whole year, we do not give a separate rate here. The Belastingdienst lists it on its box 1 rates page.
Worked example: €50,000 income
Say you are 40, employed, and have a taxable box 1 income of €50,000.
- Bracket 1: €38,883 × 35.75% = €13,900.67
- Bracket 2: (€50,000 − €38,883) = €11,117 × 37.56% = €4,175.55
- Tax and contributions before tax credits: €18,076.22
- General tax credit: €3,115 − 6.398% × (€50,000 − €29,736) = €1,818.51
- Labour tax credit: €5,685 − 6.510% × (€50,000 − €45,592) = €5,398.04
- Payable after tax credits: about €10,860
That is roughly 21.7% of your income, even though your top bracket is 37.56%. For how the credits work, see tax-credits-2026.
Frequently asked questions
Will I take home less if I move into a higher bracket?
No. Only the part above the threshold is taxed at the higher rate. However, the general tax credit and the labour tax credit are phased out at higher incomes, so in practice you pay more on an extra euro than the bracket rate alone.
Do these brackets also apply to freelancers (zzp)?
Yes. Your taxable profit falls into box 1. The entrepreneur's allowance and the SME profit exemption are deducted first; see self-employed-deduction-2026 and how-much-tax-to-set-aside-freelancer.
What about savings and investments?
Those fall into box 3, which has its own rate. See box-3-2026.
Disclaimer
This guide is for information only and is not tax advice. Amounts are rounded and assume a simplified situation. Not sure how this applies to you? Check with the Dutch Tax Administration (Belastingdienst) or a tax adviser.
This text was written with the help of AI and checked by a human against the sources listed (reference date 17 October 2026).
Sources
- Belastingdienst, Box 1: uitleg en tarieven: https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/inkomstenbelasting/heffingskortingen_boxen_tarieven/boxen_en_tarieven/box_1/box_1
- Belastingdienst, Belastingschijven en tarieven: https://www.belastingdienst.nl/wps/wcm/connect/nl/werk-en-inkomen/content/hoeveel-inkomstenbelasting-betalen
- Belastingdienst, Toelichting aangifte 2026, Hoe wordt de belasting berekend?: https://www.belastingdienst.nl/wps/wcm/connect/fisin/fisin2026/belastingberekening
- Belastingdienst, Toelichting 2026, Heffingskortingen: https://www.belastingdienst.nl/wps/wcm/connect/fisin/fisin2026/heffingskortingen
- Rijksoverheid, Soorten inkomstenbelasting: https://www.rijksoverheid.nl/themas/werk/inkomstenbelasting/soorten-inkomstenbelasting