How does income tax work when you're self-employed?
You pay Box 1 income tax on your profit, minus a few entrepreneur deductions. The main ones are the zelfstandigenaftrek, the self-employed deduction, and the startersaftrek, the starter's top-up. Both belong to the ondernemersaftrek, the main group of entrepreneur deductions. You also get the MKB-winstvrijstelling, the SME profit exemption. On top of the tax you pay a health-insurance contribution, the Zvw. This page is about income tax only. VAT is a separate return, which we cover below.
Take Priya, who freelances as a designer in Amsterdam. She moved to the Netherlands in 2022. Her profit this year is €50,000. She pays Dutch tax on her whole profit. We follow her calculation up to the tax before credits.
First, one question decides everything below: are you an entrepreneur for income tax? Having a KVK number (your Chamber of Commerce registration) does not determine this. We answer that next. This page assumes freelance profit is your only income. With a salaried job on the side your rate differs. For the bigger picture, our Dutch tax system hub explains how it all fits together. Arrived in the Netherlands this year? Then you file an M form for that year. The M form is the return for the year you move to or from the Netherlands.
In short
Box 1 on profit. You pay income tax on your profit, at the same rates as an employee.
Zelfstandigenaftrek €1,200 in 2026, down from €2,470 the year before, if you meet the urencriterium.
MKB-winstvrijstelling 12.7% comes off your profit after the ondernemersaftrek.
Urencriterium 1,225 hours a year on your business, and you must be able to prove them.
Zvw 4.85% health-insurance contribution in 2026, on income up to €79,409, on top of the tax.
Set aside 30% to 40% of profit before credits as a rule of thumb, then check it against a real calculation.
VAT is separate. Filing your income tax return does not settle your VAT return.
Are you an entrepreneur for income tax?
Not automatically. A KVK number does not make you an entrepreneur for income tax. The Belastingdienst weighs the facts of your situation. It looks at how many clients you have, how independent you are, and the risk you carry. Only a real entrepreneur for income tax gets the ondernemersaftrek at all.
This is where a lot of freelancers are unsure, and where the answer depends on your own case. We look at it with you before you file. There is a separate page on the entrepreneur test, with the full list of what counts.
What can you deduct from your profit?
The ondernemersaftrek lowers your profit first, and its biggest part is the zelfstandigenaftrek. Your profit is your turnover minus your business costs. The ondernemersaftrek is a group of deductions for entrepreneurs. It holds the zelfstandigenaftrek, the startersaftrek and a few smaller ones. In 2026 the zelfstandigenaftrek is €1,200. A year earlier it was €2,470, so it more than halved.
You only get it if you meet the urencriterium, which we explain next. The Belastingdienst caps the benefit at 37.56%, whatever your top rate.
New entrepreneurs can add the startersaftrek of €2,123 on top, in up to three of their first five years. The zelfstandigenaftrek has its own page, where we work through every condition.
Do you meet the 1,225-hour test?
You need 1,225 hours a year on your business to claim the ondernemersaftrek. That is the urencriterium. All the hours you spend on the business count, not only billable ones. Quotes, admin and your website count too.
You must be able to make it plausible, so keep a diary, quotes and invoices. Hours you were merely available do not count. The 1,225 hours do not shrink if you start midway through the year. Start on 1 July and you still need the full 1,225.
What comes off after the ondernemersaftrek?
The MKB-winstvrijstelling takes another 12.7% off your profit after the ondernemersaftrek. Every entrepreneur gets this exemption, with or without the urencriterium. The Belastingdienst caps its benefit at 37.56%, as it does for the ondernemersaftrek. After these two steps you reach your taxable profit.
On that you pay Box 1 income tax, at the same rates as an employee. Then comes one more cost the old guides forget: the Zvw contribution. Self-employed people pay 4.85% in 2026, down from 5.26%, on income up to €79,409. You pay it by assessment, on top of the income tax. It is a real part of what your year costs. In Priya's example below, that income is her taxable profit.
| What | 2026 figure |
|---|---|
| Zelfstandigenaftrek | €1,2002025: €2,470 |
| Startersaftrek (extra, first years) | €2,123 |
| MKB-winstvrijstelling | 12.7% |
| Urencriterium | 1,225 hours |
| Zvw contribution | 4.85%2025: 5.26% |
| Maximum income for the Zvw contribution | €79,409 |
| Box 1 rate up to €38,883 | 35.75% |
| Box 1 rate €38,883 to €78,426 | 37.56% |
| Box 1 rate above €78,426 | 49.50% |
What does Priya actually pay?
Priya pays about €17,364 in tax and Zvw before credits, on €50,000 profit. We work her profit down step by step, in the order the Belastingdienst uses. First the ondernemersaftrek comes off, then the MKB-winstvrijstelling. What is left is her taxable profit. On that she pays Box 1 income tax and then the Zvw contribution on top. We assume the Netherlands taxes all of her profit. The 37.56% limit does not lower her deduction, because her top rate is 37.56%. The table below carries every step to a number. Clients abroad do not change this, because Priya lives in the Netherlands.
| Step | Calculation | Result |
|---|---|---|
| Profit | – | €50,000 |
| Zelfstandigenaftrek | €50,000 - €1,200 | €48,800 |
| MKB-winstvrijstelling (12.7%) | €48,800 × 12.7% | -€6,198 |
| Taxable profit | €48,800 - €6,198 | €42,602 |
| Income tax, first bracket | €38,883 × 35.75% | €13,901 |
| Income tax, second bracket | €42,602 - €38,883 = €3,719 × 37.56% | €1,397 |
| Income tax before credits | €13,901 + €1,397 | €15,298 |
| Zvw contribution | €42,602 × 4.85% | €2,066 |
| Tax and Zvw before credits | €15,298 + €2,066 | approx. €17,364 |
So what should you set aside?
Set aside 30% to 40% of your profit as a rule of thumb. Priya's tax and Zvw before credits came to about €17,364. On €50,000 profit that is roughly 35%, right inside the rule of thumb. But it is only a rule of thumb, not your final bill.
Two tax credits still come off. The algemene heffingskorting, the general tax credit, is up to €3,115. The arbeidskorting, the labour tax credit, is up to €5,685. Both shrink as your income rises, and both build on your income after the deductions above. That is why the ondernemersaftrek and the MKB-winstvrijstelling do double work.
Your exact bill depends on those credits, which is one of the things we calculate with you. You can also spread the payments by asking for a voorlopige aanslag, a provisional assessment. Then you pay monthly instead of in one go. You file your income tax return between 1 March and 1 May. Priya sets aside 35% each month, which matches her calculation above.
Is VAT the same as income tax?
No. Your VAT return and your income tax return are two separate obligations. Filing one does not settle the other. You charge and reclaim VAT through the year, usually each quarter. Income tax you file once, over the whole year.
No one withholds income tax for you, so set the money aside yourself. If your turnover stays under €20,000 you can join the KOR, a small-business VAT scheme. With the KOR you charge no VAT and file no VAT return.
It changes your VAT, not your income tax, so the calculation above still holds. The KOR has its own page, where we go through who benefits.
What we take off your hands at filing time is on our page about the self-employed tax return.
“Most freelancers ask me what their rate is. The real question is whether they are an entrepreneur for income tax, and whether they can prove their hours. Get those two right and the rest of the calculation follows.”
belastingdienst.nl, Zelfstandigenaftrek 2026 · Accessed
belastingdienst.nl, MKB-winstvrijstelling 2026 · Accessed
belastingdienst.nl, Voorwaarden urencriterium · Accessed
belastingdienst.nl, Percentages Zvw-bijdrage · Accessed
belastingdienst.nl, Voorlopige aanslag, tarieven en heffingskortingen · Accessed
belastingdienst.nl, Voorwaarden voor deelname aan de KOR · Accessed
belastingdienst.nl, Wanneer moet mijn aangifte inkomstenbelasting binnen zijn? · Accessed
Common questions about self-employed income tax
How much tax do you pay as a freelancer?
It depends on your profit, but expect 30% to 40% before tax credits. On €50,000 profit, income tax and the Zvw come to about €17,364 before credits. That figure assumes the urencriterium, no other income and an age below AOW. The credits then lower the final bill.
What is the zelfstandigenaftrek in 2026?
The zelfstandigenaftrek is €1,200 in 2026, down from €2,470 a year earlier. You get it if you meet the 1,225-hour urencriterium. From AOW age the amount halves. The Belastingdienst caps the benefit at the 37.56% rate.
What is the urencriterium?
The urencriterium is 1,225 hours a year on your business. All business hours count, not only billable ones, and you must be able to prove them. It does not shrink if you start midway through the year.
Do I pay the Zvw contribution as well?
Yes. Self-employed people pay a 4.85% Zvw contribution in 2026, by assessment. It applies to income up to €79,409 and comes on top of your income tax. The old guides often leave it out.
Is VAT the same as income tax?
No. VAT and income tax are two separate returns. Doing your VAT return does not clear your income tax. Under €20,000 turnover you can join the KOR and charge no VAT.
I just registered with the KVK. Am I an entrepreneur for income tax?
Not automatically. A KVK number does not decide it. The Belastingdienst weighs your clients, your independence and your risk. We review this with you before you file.
When is the income tax return due?
The filing window runs from 1 March to 1 May, for the previous year. No one withholds tax for you. So set money aside, or ask for a voorlopige aanslag, a provisional assessment. If you arrived in the Netherlands during the year you file an M form instead. You use the M form only for that year of arrival.