There are no local taxes on income in the Netherlands. Please note that the tax rate of box 2 will be adjusted by 2024, by introducing two new brackets: a basic rate of 24.5% for the first 67.000 euros in income per person and a rate of 31% for the remainder.īox 3 income (deemed return on savings and investments) is taxed at a flat rate of 32%. * In the first bracket of box 1, national insurance tax is levied at a rate of 27.65%.īox 2 income is taxed at a flat rate of 26.9%. 2023 rates for box 1 income Taxable income (EUR) The last 33,225 (75,000-41,775) is taxed at 22 7,309.50 The total tax amount for your 75,000 income is the sum of. It has several income brackets, each corresponding to a different tax rate, which varies from 0. What income tax band am I in 20 basic rate on taxable income up to 37,700 40 higher rate on the next slice of taxable income over 37,701 45 additional. Your tax bracket is determined by your filing. As slices of you income move up the ladder, they’re taxed at increasing rates: The first 10,275 is taxed at 10: 1,027.50. Furthermore, tax brackets have an automatic stabilizing effect on an individuals after-tax income, as a decrease in funds is counteracted by a decrease in the. Benefits relating to income provisions.īox 2 refers to taxable income from a substantial interest.īox 3 applies to taxable income from savings and investment ( see the Income determination section for more information). 2024 tax year (1 March 2023 29 February 2024) 237 101 370 500, 42 678 + 26 of taxable income above 237 100 370 501 512 800, 77 362 + 31 of taxable. For the 2022 tax yearand the return you’re filing in 2023there are seven federal income tax brackets: 10, 12, 22, 24, 32, 35 and 37.Home ownership of a principal residence (deemed income). An individual's taxable income is based on the aggregate income in these three boxes.īox 1 refers to taxable income from work and home ownership, and includes the following: For more information on tax rates, see the Budget webpage. Information is recorded from current tax year to oldest, e.g. In the Netherlands, worldwide income is divided into three different types of taxable income, and each income type is taxed separately under its own schedule, referred to as a 'box'. Tax rates are proposed by the Minister of Finance in the annual Budget Speech and fixed or passed by Parliament each year. The Netherlands taxes its residents on their worldwide income non-residents are subject to tax only on income derived from specific sources in the Netherlands (mainly income from employment, director’s fees, business income, and income from Dutch immovable property).
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