Netherlands Income Tax 2025: Box 1 Rates
2026-02-18
The Netherlands taxes income in three "boxes," but for most employees only Box 1 matters: it covers employment and home-ownership income under a progressive scale that already bundles in employee social insurance.
Box 1 rates 2025
| Taxable income up to | Rate |
|---|---|
| €38,441 | 35.82% |
| €76,817 | 37.48% |
| above | 49.50% |
These rates look high because they include employee social insurance (AOW pension, ANW, WLZ) of around 17.9% up to a contribution ceiling, not just income tax. The advertised "income tax" and "social premium" are presented together in Box 1.
What's not in Box 1
- Box 2: income from substantial shareholdings (typically ≥5% ownership) — a separate, lower rate.
- Box 3: taxable deemed return on savings and investments.
For a normal salary, only Box 1 applies, and the effective deduction for a median earner is roughly 35% of gross — mid-pack in our Europe tax ranking.
Estimate your own
Open the European Net Salary Estimator and pick Netherlands, or read the full Netherlands country page.
Simplified 2025 figures for educational use, not official tax advice. Box 1 rates, the social insurance premium, and thresholds change annually — confirm with Belastingdienst or a qualified advisor.