Tax rates in the Netherlands 2016

Combined rates in Box 1 for persons younger than retirement age
Taxable income 
Tax per bracket

Premium National Insurance

Total rate Total per bracket Cumulative
Of more than But less than          
             
€ 0 € 19,922 8.40 % 28.15 % 36.55 % € 7,281 € 7,281
€ 19,922 € 33,715 12.25 % 28.15 % 40,40 % € 5,572 € 12,853
€ 33,715 € 66.421 40,40 %   40,40 % € 13,213 € 26,066
€ 66.421   52 %   52 %    

 

National insurance premiums (premiums social security)


Total premium for the national insurance is 28.15% which is divided in:

  • AOW (General Old-age Pensions Act ): 17.9%
  • ANW (General Surviving Relatives Act): 0.6%
  • Wlz (Act on long-term care): 9.65%

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


For the year 2016 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 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) € 2,242
Personal tax credit (max for higher incomes) € 0
Personal tax credit for partner without income born after 1 January 1963 € 1,047
Personal tax credit for partner without income born before 1 January 1963 € 2,242
Labour tax credit (max for lower incomes) € 3,103
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.

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