Income Tax slabs in Netherlands

In the Netherlands, the income tax system is progressive, meaning that the tax rates increase as the income levels rise. As of the knowledge cutoff in September 2021, the income tax rates and corresponding income brackets for individuals are as follows:

1. Box 1: Income from Work and Home

- For individuals under the AOW pension age:

  - 37.10% on income up to €68,507

  - 49.50% on income exceeding €68,507

- For individuals above the AOW pension age:

  - 19.20% on income up to €35,939

  - 37.10% on income exceeding €35,939

2. Box 2: Income from Substantial Interest (e.g., substantial shareholdings in a company)

- A flat tax rate of 26.9% is applied to income from substantial interest.

3. Box 3: Income from Savings and Investments

- Tax is calculated based on the deemed return on net assets, and the tax rate is 33% of the deemed return.

- The deemed return is determined based on a tax schedule that considers the value of the net assets.

It's important to note that these tax rates and income brackets are subject to change, and the actual rates may vary depending on specific circumstances. Additionally, there may be various deductions, credits, and allowances that can affect the final tax liability.

For accurate and up-to-date information on income tax rates and regulations in the Netherlands, it is advisable to consult the official website of the Dutch Tax and Customs Administration (Belastingdienst) or seek professional advice from a tax expert or advisor.