Tax rates in the Netherlands 2018

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Rate Box 1 (income from work and home)

For the year 2018 the tax rate for income from work and home is:

Combined rates in Box 1 for persons younger than retirement age

Taxable income
Tax per bracket
Premium National
Insurance per bracket
Total rate
Of more thanbut less than
€ 0€ 20,1428.90%27.65%36.55%
€ 20,142€ 33,99413.20%27.65%40.85%
€ 33,994€ 68,50740.85%40.85%
€ 68,50751.95%51.95%

National insurance premiums (premiums social security)

Total premium for the national insurance is 27.65% which is divided in:

  • AOW (General Old-age Pensions Act ): 17.9%
  • ANW (General Surviving Relatives Act): 0.1%
  • Wlz (Act on long-term care): 9.65%

Rate Box 2 (income from a substantial interest in a limited company)

For the year 2019 the tax rate for income from a substantial interest is 25%.

Rate Box 3 (income from savings and investments)

The tax rate for income from savings and investments stays 30%. Expats with the 30% ruling can opt in the tax return to be exempted from taxation on savings and most of the investments.

Tax credits

After the tax has been calculated based on the above percentages you can reduce the calculated amount with the applicable tax credits.

  • Personal tax credit (max for lower incomes) € 2,265
  • Personal tax credit (max for higher incomes) € 0
  • Personal tax credit for partner without income born after 1 January 1963 € 755
  • Personal tax credit for partner without income born before 1 January 1963 € 2,265
  • Labour tax credit (max for lower incomes) € 3,249
  • Labour tax credit (max for higher incomes) € 0

If you have children additional tax credits can apply. There are also other specific tax credits depending on your situation but the above are the common tax credits.