Tax credits (heffingskortingen)
The general and labour tax credits lower your income tax directly. See which ones apply to you.
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A salary, a second job, shares from work, a pension: the Belastingdienst taxes each part in its own way. Here is how Box 1 works and where to go for your situation.
Dutch tax system
Box 1 is the tax you pay on income from work and your home. Most of what you earn from a job falls here. The Belastingdienst taxes it at progressive rates, so you pay a higher rate on the top part of a higher income.
For 2026, below state pension age, you pay 35.75% on income up to €38,883. Between €38,883 and €78,426 the rate is 37.56%. Above €78,426 it is 49.50%. Two tax credits then lower the bill. The general tax credit is worth up to €3,115. The labour tax credit is worth up to €5,685 for people who work.
Your employer already withholds part of this every month, called loonheffing. It is an advance on your income tax. After the year, your tax return settles the final amount, so you either get money back or pay a little extra.
Your salary is the main piece, but a second job, shares from your employer or a company bike each change the picture. The sections below take you to the part that fits your situation. These figures assume a full year on Dutch payroll. If you arrived or left this year, your first return works differently. Your Dutch tax return page explains a first or final year.
Your income
Your income tax depends on where each part of your pay comes from. Start with the card that matches your situation.
Other income from work has its own rules. Read about income from other activities, tax on influencer income, royalties and carried interest. Working from home? See the working-from-home allowance. Buying an electric car? See the electric car subsidy. Want your net pay first? Our take-home pay calculator works it out.
Your bill
A few rules decide how much income tax you actually pay. Tax credits lower it directly. Income averaging ended in 2023, but you can still claim it over 2022, 2023 and 2024. And the rates set the rest.
The general and labour tax credits lower your income tax directly. See which ones apply to you.
The scheme ended in 2023. You can still claim a refund over 2022, 2023 and 2024, before your deadline.
The full Box 1 rates and brackets, and how they change each year, in one place.
Later in life
Your pension and state pension count as income, at lower rates from state pension age. Our pension section covers how the Belastingdienst taxes your retirement income. Start here if that is on your mind. Receiving long-term care? Your Wlz personal contribution depends on your income.
See the whole picture of stopping work in the Netherlands, from the state pension to your own savings.
Pension income sits in Box 1, but at lower rates once you reach state pension age. See how it works.
Next step
Your tax return is usually the next step after this overview. It is where everything comes together and where the Belastingdienst settles any refund. If you would rather see the whole system first, start there instead.
We file your return and review every credit and deduction, so your income tax is right for the year.
How income tax fits with the other boxes, the deadlines and the rules. The overview of the whole system.
New to working in the Netherlands? See what the deductions on your payslip mean and how loonheffing works.
A second employer often withholds too little tax. See how the tax on a second job works, and how to avoid a bill.
Shares from your employer count as salary when they vest. See when the tax is due and how to report it.
A company bike is a taxed benefit with its own simple rules. See what it adds to your income.
Frequently asked
The questions we hear most about income tax in the Netherlands. Yours not here? Ask your advisor
Income tax
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Updated 4 August 2026
“Most people are not sure which parts of their pay the Belastingdienst taxes, or whether their payroll is even right. We walk through your full picture and make sure we miss nothing before you file.”
Menno van der Made
Tax advisor
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