Expat Money Guide

Netherlands Income Tax Calculator 2027 & 2026

Use this Dutch income tax calculator for 2027 and 2026 to estimate net salary, Box 1 income tax, payroll tax credits, holiday allowance and the 30% ruling. Select a year to compare the current 2026 rules with provisional 2027 planning figures.

Last reviewed: 7 October 2026 Methodology: Based on official Belastingdienst rules and published 2027 parameters 2026 current rules; 2027 figures are provisional estimates based on announced/projected parameters

Only used for weekly or hourly income

Holiday allowance included in input gross

Off = 8% vakantiegeld is added on top of the amount entered

Estimated net monthly take-home pay

€ 4.097

Net Monthly (Base Salary): € 3.794 / mo

Base monthly pay if 8% Vakantiegeld is paid out annually as a lump sum in May/June.

€ 49.165 net per year · € 70.200 gross

Effective tax rate

30.0%

€ 21.035 total tax per year

Timeframe

BreakdownMonth
Gross Income (excl. holiday allowance)€ 5.417
Gross Holiday Allowance (8%)€ 433
Tax-Free Expat Income (30% ruling)€ 0
Taxable Income€ 5.850
Payroll Tax (Inkomstenbelasting)−€ 1.241
Social Security Tax (Premies volksverzekeringen)−€ 896
General Tax Credit€ 44
Labour Tax Credit€ 340
Total Income Tax Owed−€ 1.753
Net Holiday Allowance€ 303
Net Take-Home Pay€ 4.097

Where your gross salary goes

Exemption rate
—
Minimum taxable salary
€ 48.013
Taxable income
€ 70.200

How Dutch income tax is calculated

Gross salary is the starting point. Employment income is generally taxed in Box 1 using progressive brackets. Payroll tax and social security contributions affect what is withheld, while tax credits can reduce the amount owed. Holiday allowance is generally taxable income, and the 30% ruling can change the taxable salary for eligible employees. The result is an estimate of net salary, not a guaranteed payslip amount.

The 30% ruling and your Dutch net salary

Eligible employees may receive a tax-favoured allowance under the Dutch 30% ruling. The applicable percentage and eligibility depend on the relevant rules and your circumstances. Use the 30% ruling calculator to compare an estimated result using current and provisional parameters.

How this Dutch tax calculator applies Box 1

Box 1 covers income from work and home. Progressive rates apply, and tax credits can reduce tax payable. The exact result depends on income, age, tax credits, social-security position and other inputs. For the full tables and context, read the proposed Dutch income tax brackets for 2027.

Dutch holiday allowance (vakantiegeld)

Holiday allowance is commonly around 8% of qualifying gross salary and is generally taxable. The actual amount depends on employment arrangements; this calculator incorporates it according to the selected input setting.

Payroll tax and social security contributions

Dutch employers generally withhold payroll-related taxes and contributions from salary. The exact calculation depends on the employee's circumstances, including age, income and whether payroll credits are applied.

Dutch income tax changes 2027

These provisional 2027 figures come from the Belastingplan 2027 proposals and may change before parliamentary approval. The calculator currently applies Box 1 rates of 36.23% up to €39,247, 38.16% up to €78,426, and 49.5% above that threshold. It also applies a maximum general tax credit of €3,154 and maximum labour tax credit of €5,929, subject to their income-based calculations.

Use these as planning estimates, not confirmed filing parameters. See the Netherlands tax changes 2027 guide for an explanation of the proposals.

Dutch Box 3 calculator30% ruling changes in 2027Proposed Box 3 rules for 2027Dutch benefits calculatorZZP/freelance calculatorExpat finance planner

Estimates use current 2026 rules and provisional 2027 parameters. Consult a certified payroll advisor for official tax filing.

Next Steps & Related Resources

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Next calculator30% Ruling CalculatorSee what the expat ruling adds to your net pay. Read the guideStarting a New Job in the NetherlandsPayslip, tax credits and holiday allowance explained. Compare providersBest Expat Bank AccountsWhere to receive your Dutch salary.

Understanding your Dutch payslip

The expat tax ruling (30% → 27% transition)

The expat facility lets employers pay part of your gross salary as a tax-free reimbursement for extraterritorial costs. In 2026 the exemption is 30% of gross salary; from 2027 it steps down to a flat 27% for all holders.

Your remaining taxable salary must stay above the statutory minimum: €48,013 in 2026 and €50,436 in 2027 (€36,497 for an under-30 employee with a qualifying master's degree; €38,338 in 2027).

The exemption base is capped at the WNT norm (€262,000 in 2026; €262,000 in 2027) and the ruling runs for a maximum of 5 years from the start date.

Vakantiegeld (holiday allowance) explained

Dutch law entitles employees to a holiday allowance of at least 8% of the annual gross salary, normally accrued from June to May and paid out in May or June.

Contracts quote either salary excluding holiday allowance (8% added on top) or a total package including it — this calculator handles both via the toggle.

Holiday allowance is regular Box 1 income. Payroll usually applies the special-rate table (bijzonder tarief), so the payout can look heavily taxed, but the annual settlement evens out.

Box 1 tax brackets & credits overview

Box 1 covers income from work and home ownership. For 2026: 35.7% up to €38,883, 37.56% up to €78,426, 49.5% above that. Bracket 1 includes 27.65% national insurance premiums.

The general tax credit (algemene heffingskorting) is up to €3,115 in 2026 and tapers away as taxable income rises past roughly €29,736.

The labour tax credit (arbeidskorting) rewards employment income, peaking around €5,685 before phasing out at about 6.51% of income above €45,592.

Minimum taxable salary floor

The expat exemption may never push your taxable salary below the statutory floor: €48,013 in 2026 and €50,436 in 2027 (€36,497 / €38,338 for the under-30 master's threshold where available).

If 30% (or 27%) of your gross salary would drop the remainder under that floor, the exemption is scaled back: only the part of your salary above the floor is paid tax-free.

Below the floor the ruling gives no benefit at all, and part-year employment scales the floor proportionally to the months you were employed.

Payroll tax credits (loonheffingskorting)

Tax credits are subtracted from the tax you owe, not from your income, so each euro of credit is a full euro of extra net pay. Your employer applies them only if you tick loonheffingskorting for that job.

The general tax credit (algemene heffingskorting) is granted to every taxpayer and tapers off as taxable income rises past roughly €29,736 until it reaches zero.

The labour tax credit (arbeidskorting) rewards income from work: it builds up over several segments, peaks around €5,685, and then phases out at about 6.51% of income above €45,592.

Payroll tax vs. social security premiums

Your payslip shows one combined loonheffing, but it holds two components: income tax (inkomstenbelasting) and national insurance premiums (premies volksverzekeringen).

The premiums (27.65%) only apply inside the first bracket and fund AOW state pension, Anw survivor benefits and Wlz long-term care. Higher brackets are pure income tax.

Once you reach AOW age you stop paying the 17.9% AOW component, which is why the first-bracket rate drops sharply — this calculator splits both amounts out separately.

Frequently asked questions

How is Dutch income tax calculated?
Gross employment income is generally taxed in Box 1 using progressive brackets. Payroll tax and social security contributions are withheld, and eligible tax credits reduce the amount owed. The calculator gives an estimate based on the inputs selected.
How much tax do I pay on my salary in the Netherlands?
It depends on gross income, the year, age, payroll credits, social-security position, holiday allowance and possible ruling eligibility. Use your annual or periodic gross salary to get an indicative estimate.
How do I calculate my Dutch net salary?
Enter your gross amount, pay period, weekly hours where relevant and tax year, then select the options that match your circumstances. The result estimates net pay after Box 1 tax, contributions and credits.
What is the difference between gross salary and net salary in the Netherlands?
Gross salary is the amount before payroll deductions and tax. Net salary is the amount left after estimated tax, social security contributions and applicable credits. Holiday allowance may be quoted separately or included in gross salary.
How does the 30% ruling affect my take-home pay?
Eligible employees may receive part of their salary as a tax-favoured allowance. The effect depends on eligibility, the applicable year and transitional rules, so treat the result as an estimate rather than a guaranteed entitlement.
Is holiday allowance taxed in the Netherlands?
Generally yes. Holiday allowance is usually taxable Box 1 employment income, often paid in May or June. The amount and payroll treatment can depend on your employment arrangement.
What are the Dutch income tax brackets for 2026?
The 2026 Box 1 brackets in the calculator are 35.7% up to €38,883, 37.56% up to €78,426, 49.5% above €78,426. These parameters are read from the canonical tax data file.
What changes to Dutch income tax are expected in 2027?
The calculator includes 2027 planning parameters, but figures are provisional where final rules have not been published. Compare the two years for an estimate and confirm final figures with official Dutch sources before filing or making major financial decisions.
What are the proposed Dutch income tax brackets for 2027?
The provisional 2027 Box 1 brackets in the calculator are 36.23% up to €39,247, 38.16% up to €78,426, 49.5% above €78,426. These proposed parameters come from the canonical tax data and may change before approval.
How is my Dutch net salary actually calculated from gross?
Your gross annual salary (including holiday allowance if it is part of your package) is taxed in Box 1 using the progressive brackets for that year. Payroll tax and national insurance contributions are withheld together, then the general tax credit and labour credit reduce the amount due, both tapering as income rises. If you have the expat ruling, part of your salary is treated as a tax-free allowance first, so only the remainder is taxed. What is left after withholding and credits is your net salary.
Why is my holiday allowance (vakantiegeld) taxed so heavily in May?
Holiday allowance is normal taxable income, but payroll software treats a lump sum as a 'bijzondere beloning' and applies a flat rate based on your projected annual income, which is typically your top marginal rate. Nothing extra is actually owed: because your tax credits are already used up in your monthly pay, the deduction on the lump sum simply looks larger. Any over-withholding is settled in your annual tax return.
What is the difference between the 30% and 27% expat ruling percentages?
The ruling lets an eligible employer pay part of salary as a tax-free allowance for extraterritorial costs. Employees who first applied for or used it by the end of 2023 retain the 30% rate under the applicable transition rules. Those who first applied in 2024 move to 27% from 2027 while the applicable 2024 salary norm remains relevant. Applicants from 2025 onward move to 27% from 2027 and use the new 2027 salary norm. Check your own grant decision and current Belastingdienst guidance.
Do I need to file a Dutch tax return if my employer already withholds payroll tax?
Often yes. Payroll withholding is an advance payment, not a final assessment. You must file if the Belastingdienst sends you an invitation, and filing is usually worthwhile if you had more than one employer, changed jobs mid-year, own a home with deductible mortgage interest, have Box 3 assets above the tax-free allowance, have a fiscal partner, or arrived in or left the Netherlands during the year. Many expats receive a refund in their first filing year.

Official primary sources

Belastingdienst.nl Rijksoverheid.nl SVB.nl

Calculator tax, benefit and pension parameters are based on relevant official publications. Market rates and personal entitlements can differ. Calculations are indicative estimates, not official assessments or financial or tax advice.

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Found something that looks incorrect?

Tax rules, rates and regulations can change. If you spot an inaccurate figure, calculation, assumption or missing option — or have a suggestion for additional options or calculator features — please let us know.