Dutch Income Tax Calculator 2025
🏠 Free ToolCalculate how much Dutch income tax you owe in 2025 with current rates, tax credits and the bracket system.
| Bracket | Rate | Taxable | Tax |
|---|---|---|---|
| €0 – €38,441 | 36.97% | €38,441 | €14,211.64 |
| €38,441 – €75,518 | 49.50% | €6,559 | €3,246.71 |
How it Works
The Dutch income tax system in Box 1 uses progressive brackets. In 2025 there are two effective rates: 36.97% on the first €38,441 and 49.50% on everything above. This rate includes both income tax and social security contributions (AOW, Anw and Wlz).
Two important tax credits substantially reduce your actual tax burden. The general tax credit (algemene heffingskorting) is available to everyone and reaches €3,362. The employment tax credit (arbeidskorting) applies to those with employment income and can be as high as €5,397. Both credits phase out at higher incomes.
For most employees, the effective tax rate is significantly lower than the marginal rate. At a median income of around €44,000, the effective rate is approximately 27% after all credits are applied. This calculator gives you immediate insight into your net income.
People who have reached AOW age pay a lower rate in the first bracket because they no longer contribute to the state pension fund. This makes a difference of nearly 18 percentage points in the first bracket.
Frequently Asked Questions
How much income tax do I pay in the Netherlands in 2025?
In 2025 you pay 36.97% on the first €38,441 and 49.50% on income above that. After applying tax credits (general tax credit and employment tax credit), your effective rate is lower.
What is the algemene heffingskorting?
The algemene heffingskorting (general tax credit) is a credit everyone receives. In 2025 it is up to €3,362 and phases out as income increases.
Do expats pay different tax rates?
Expats may qualify for the 30% ruling, which effectively exempts 30% of salary from tax. This calculator shows the standard rates without the 30% ruling.
What happens when I reach AOW age?
Once you reach state pension age, you no longer pay AOW premiums, reducing the first bracket rate from 36.97% to 19.07%.