Starting a Job in the Netherlands: Salary, Tax & 30% Ruling (2026)

Dutch employers are required to pay a holiday allowance (vakantiegeld) of 8% of your gross annual salary, typically paid in May. This is taxed at the same rate as your regular income. Your monthly gross salary does not include the holiday allowance — it is paid on top. When comparing job offers, always ask whether the stated salary is gross annual (bruto jaarloon) and whether the 8% vakantiegeld is included or separate.

The expat ruling (30%-regeling) is a tax benefit for highly skilled migrants recruited from abroad. In 2026, it allows your employer to pay 30% of your salary tax-free, reducing your effective tax rate significantly. The ruling lasts up to 5 years and transitions to 27% from 2027. To qualify, you must have specific expertise and earn at least the statutory minimum taxable salary: €48,013 in 2026 (roughly €68,590 total gross salary before the 30% exemption is deducted), or €36,497 taxable salary if you are under 30 with a relevant master’s degree.

If you have savings, investments, or a second home, these fall under Box 3 (vermogensrendementheffing). The Belastingdienst applies a deemed return (6% for investments in 2026) to your total assets above the tax-free allowance (€59,357 single, €118,714 fiscal partners), then taxes that deemed return at 36%. Tax is charged on this deemed return rather than directly on your realised gains. The Supreme Court’s actual-return counterproof rules may allow taxpayers to have their Box 3 tax recalculated using their actual return where this is lower than the deemed return, subject to applicable documentation and legal criteria. A future system based on actual returns is planned but still subject to legislation.

The Dutch government provides allowances (toeslagen) to help lower- and middle-income residents with healthcare and housing costs. Zorgtoeslag (healthcare allowance) partially reimburses your monthly health insurance premium. Huurtoeslag (rent allowance) helps with rent if you live in a rental property below the liberalisation threshold. Eligibility depends on your (joint) annual income and rent level. As an expat with the 30% ruling, your tax-free portion is still counted as income for toeslagen purposes.