Income tax in the Netherlands is primarily collected through the Box 1 system, covering employment income, pensions, and home ownership benefits. Understanding the rates, brackets, and available deductions is crucial for tax planning.

2025 Tax Rates and Brackets

The Dutch income tax system uses progressive rates:

• Bracket 1: 36.97% on income up to €79,842
• Bracket 2: 49.50% on income above €79,842

Available Deductions

Several deductions can reduce your taxable income, including mortgage interest (limited), study costs, medical expenses above €385, and charitable donations.

Tax Credits

Important tax credits include the general tax credit (up to €3,380), employment tax credit (up to €5,565), and various other situation-specific credits.

Learn more about income tax optimization and planning through our detailed articles and resources.