How does second job tax work in the Netherlands?
You do not pay more tax simply for having a second job. The Belastingdienst taxes your total annual income, and the number of jobs makes no difference to the final bill. It adds every euro you earn from work into one Box 1 total. That is the box for income from work and home. It then taxes that total once at the progressive rates.² So two payslips never mean two separate tax bills.
This page is for internationals working in the Netherlands who take on a second employment. It covers payroll jobs, where each employer withholds wage tax (loonheffing).
» More: freelance income counts as income from other work (inkomsten uit overige werkzaamheden). We walk through those rules on its own page.
Meet Nadia. She earns €35,000 in her main job and takes a second job worth €12,000. We follow her through every rule below.
In short
One total, not two. You pay tax on your combined annual income, so the number of jobs does not change the final bill.²
The credit goes to one job. Only one employer may apply the payroll tax credit (loonheffingskorting), or too little tax is withheld.²
Job two looks heavier. In your return, its income stacks on top of your first job. It can meet a higher bracket and shrink your tax credits.
Refund or payback. Two jobs at once with the credit applied twice usually means paying back. Jobs one after another often bring a refund.²
2026 Box 1 rates. 35.75% up to €38,883, 37.56% up to €78,426, then 49.50%.¹
The return settles it. Filing corrects any withholding gap, so you end on your true annual bill.²
Why does my second payslip show so much withholding?
The job without the payroll tax credit, usually your second one, looks over-taxed. Your two employers each withhold tax as if they were your only job. The final bill tracks your total income, but no employer can see the other's payslip. So each one works out wage tax on its own slice, from the bottom of the rate table up. Your second job never knows it comes on top of the first. That is why its take-home can look wrong, even when your annual total is exactly right.²
Only one employer applies the payroll tax credit (loonheffingskorting), a discount every worker gets on wage tax. You get it at one job, and it lifts your monthly net pay.² Those progressive Box 1 rates decide your real bill, so it helps to see them in full. The 2026 brackets are below.
| Taxable income | 2026 rate |
|---|---|
| Up to €38,883 | 35.75% |
| €38,883 to €78,426 | 37.56% |
| Above €78,426 | 49.50% |
Where should you apply the payroll tax credit?
Apply the payroll tax credit at one job only, ideally your highest-paying one. You just saw that the credit lowers your monthly wage tax. The rule behind it is simple: one employer may apply it at a time.² Put it on the job that pays the most, so the largest slice of your income gets the discount up front. Your other employer then withholds without it. You set this on the payroll form each employer hands you. Arrived mid-year? The credit still goes on one job. In your arrival year you file an M form for the part of the year you lived here.
For Nadia, that means the credit belongs on her €35,000 main job, not the €12,000 second one. She keeps it where her income is largest. Getting this wrong has a predictable cost, shown below.
Why does the tax on your second job feel so high?
In your annual return, your second job meets your highest tax rate. Even with the credit on the right job, job two can still cost more than you expect. When you file, its income comes on top of your first job. That puts it at the top of your rate band. And as your total climbs, two tax credits begin to shrink.
Take Nadia. Her €35,000 main job sits entirely in the 35.75% bracket. Her second job lifts her total to €47,000. The slice above €38,883, some €8,117, falls in the 37.56% band rather than 35.75%.¹ So the second job pays the higher rate, not the gentle average her first job enjoyed.
Two tax credits deepen the effect. The employment tax credit (arbeidskorting) rises with your work income until it peaks at €5,685 near €45,592. Above that it falls by 6.510% of every extra euro.¹ Nadia's main job alone is below the peak, so her second job first lifts this credit. Her total then passes the peak by €1,408, so about €92 falls away again. The general tax credit (algemene heffingskorting) tapers too, by 6.398% on income above €29,736.¹ Nadia is €17,264 over that line, so it drops by about €1,105. On her main job alone, the drop would be about €337. Her second job accounts for about €768 of that drop. Once her total passes both thresholds, both credits shrink at once. That is the real reason the marginal tax on a second job feels steep. The 2026 credit figures are below.
| Tax credit | Maximum | Phase-out rate | Reaches €0 at |
|---|---|---|---|
| General tax credit (algemene heffingskorting) | €3,115 | 6.398% above €29,736 | €78,426 |
| Employment tax credit (arbeidskorting) | €5,685 | 6.510% above €45,592 | €132,920 |
Second job or freelance work: which rules apply?
This page covers a second job on a payroll, not freelance side income. The line matters, because the two follow different tax rules. A second job means a second employer who runs payroll and withholds your wage tax for you. Freelance or gig income has no employer doing that. It counts as income from other work (inkomsten uit overige werkzaamheden). You settle that yourself in your return.
Want the detail behind the two credits above? We explain the employment tax credit and the general tax credit on their own pages, each with the full tables. This page keeps to how those credits behave across two jobs. Have the 30% ruling? You apply for it together with your employer. Ask us whether your second employer can apply with you too.
How do you prevent a surprise tax bill?
Put the payroll tax credit on your highest-paying job, then check your withholding. Three moves keep you clear of a payback. First, apply the credit at one job only, the one that pays most. Second, if you expect a shortfall, ask the Belastingdienst for a provisional assessment (voorlopige aanslag). It spreads the extra tax across the year, so nothing piles up. Third, let the annual return do the final maths.
This is where we come in. Your advisor checks that your credit is on the right job.
For Nadia, that means one filing. Her two payslips, her credit placement and her final bill all line up. No letter from the Belastingdienst catches her by surprise.
How the Dutch tax system treats what you earn is on our overview of work and income.
“A second payslip can look alarming, all tax and little take-home. Almost always the number is right for that one job and simply misread across two. Once we place the credit well and file both together, most people see the bill was fair the whole time.”
1 belastingdienst.nl, Voorlopige aanslag, tarieven en heffingskortingen 2026 · Accessed
2 belastingdienst.nl, Ik heb verschillende banen · Accessed
Common questions about second job tax in the Netherlands
Do you pay more tax if you have two jobs in the Netherlands?
No. Your tax depends on your total annual income, not the number of jobs. The Belastingdienst adds both salaries together and taxes them once, at the progressive Box 1 rates. Two jobs simply change how the tax is withheld during the year.
Can I apply the payroll tax credit at both jobs?
No. Only one job can have the payroll tax credit (loonheffingskorting) at a time. Apply it twice and too little tax is withheld, so you pay the difference back after filing. Keep it on your highest-paying job.
Why is the tax on my second job so high?
Because your second job stacks on top of your first, at your highest rate. Its income can cross into the 37.56% bracket, and it can shrink your tax credits once your total passes their thresholds. The rate is correct, it just applies to the top of your income. On the payslip, job two also lacks the payroll tax credit. The higher bracket applies when you file, not on the payslip.
Will I get a refund or have to pay for my second job?
It depends on how your jobs overlapped. Two jobs at the same time with the credit applied twice usually means paying tax back. Jobs one after another in the same year often produce a refund. Your return settles the exact figure.
Where do I set the payroll tax credit for my second job?
You set it through the payroll details form your employer gives you when you start. Tell your main employer to apply the credit and ask the second employer not to. You can switch it later if your highest-paying job changes.
Does a second job affect my tax credits?
Yes. Above certain income levels, a higher total lowers both tax credits. Both taper as your income passes their thresholds. Below its peak, extra work income still raises the employment credit. That is part of why the second job's marginal tax feels higher.