How is your pension taxed in the Netherlands?
Your pension is Box 1 income, taxed at the rate for your age. Both your AOW (the Dutch state pension) and your company pension count as Box 1 income. The payer withholds loonheffing (wage tax) each month.
This page covers the payout side: what you pay once the money reaches you. It does not cover building up pension or cross-border and emigration rules. We cover building up pension in our pension gap guide. You'll find living abroad and foreign pots in foreign pensions.
Take Miguel, 67, retired in the Netherlands with a pension pot from working abroad. He also receives Dutch AOW plus a company pension. We work out his 2026 tax below. The AOW age is 67 in 2026, the age your state pension starts.
In short
Box 1, not Box 3. Your AOW and pension count as income, not wealth.
17.85% first-bracket rate applies once you reach the AOW age in 2026.
35.75% below the AOW age on income up to €38,883 in the first bracket.
No AOW premium after the AOW age. That is why the rate drops to 17.85%.
Ouderenkorting up to €2,067. This senior citizens' credit lowers your 2026 bill.
Reaching the AOW age mid-year? Your first-bracket rate rises with each month.
Which rates apply after you reach the AOW age?
After the AOW age you pay 17.85% in the first bracket, not 35.75%. You stop paying the AOW premium of 17.90% once you reach the AOW age. The Anw (survivors' insurance) and Wlz (long-term care) premiums continue, so the rate does not fall to zero. The higher brackets stay the same: 37.56% and 49.50%.
Miguel has reached the AOW age, so he pays 17.85% on his first €38,883. If you were born before 1946 your first bracket runs to €41,123.
| Income bracket (2026) | Below AOW age | AOW age reached |
|---|---|---|
| First bracket (up to €38,883) | 35.75% | 17.85%(born before 1946: up to €41,123) |
| Second bracket (€38,883 to €78,426) | 37.56% | 37.56% |
| Third bracket (above €78,426) | 49.50% | 49.50% |
What if you reach the AOW age during 2026?
In your AOW year, your first-bracket rate rises each month. You pay the low rate only from the month you reach the AOW age. Each month in between rises step by step.
The table below shows the rate by the month you reach the AOW age. You pay the AOW premium for each month before you reach the AOW age.
| You reach the AOW age in | First-bracket rate |
|---|---|
| January | 17.85% |
| February | 19.34% |
| December | 34.26% |
Which tax credits lower your bill?
The ouderenkorting (senior citizens' tax credit) is worth up to €2,067 in 2026. You get the full amount if your income stays below €46,002. Above that, the credit tapers to nothing at €59,782.
Single pensioners also get the alleenstaande ouderenkorting, the extra credit for single pensioners, worth €540. These credits come off your tax, so they lower what you actually pay. If more than one payer applies the credit, it can be applied twice.
What does Miguel actually pay in 2026?
On a €30,000 pension, Miguel pays 17.85% in the first bracket. His whole income sits in the first bracket, below €38,883. The tax before credits is €30,000 times 17.85%. That comes to €5,355.
The ouderenkorting takes €2,067 off, because his income is below €46,002. That leaves €3,288 before the general tax credit. His algemene heffingskorting lowers it further. That amount depends on his total income, and his advisor works it out for him.
| Step | Calculation | Result |
|---|---|---|
| Pension income (Box 1) | AOW plus company pension | €30,000 |
| First-bracket rate (AOW age) | up to €38,883 | 17.85% |
| Tax before credits | €30,000 x 17.85% | €5,355 |
| Ouderenkorting | income below €46,002 | -€2,067 |
| Subtotal | €5,355 minus €2,067 | €3,288 |
| General tax credit |
“Most people worry they pay too much on their pension. Once you see the age brackets and the ouderenkorting, it becomes clear. We check your figures and the withholding, so you know it is right.”
What changes are coming for pensioners?
The AOW age stays 67 in 2026 and 2027. In 2028 it rises to 67 years and 3 months. Pension schemes must finish the move to the new system before 1 January 2028. That system is the Wet toekomst pensioenen. It is a system change, not a new tax rate.
Building up pension has its own limits. We go into that in our pension gap guide. We explain the annuity (lijfrente) in our annuity guide.
What should you check now?
Check that the withholding on your pension matches your age and your credits. Payers do not always apply the ouderenkorting or the right age bracket. An income-dependent healthcare contribution, the Zvw, also applies to your pension income.
Do you have pots in more than one country? The rules are different, and we cover those in foreign pensions. Want to check your withholding through your tax return? We handle that too on our tax return service. When the full picture matters, book a free intro call with a pension advisor. Miguel ran these checks too. His withholding turned out to be right.
How this fits your wider pension plan is on our page about pension advice.
belastingdienst.nl, Box 1 rates, brackets and tax credits 2026 · Accessed
svb.nl, AOW age · Accessed
rijksoverheid.nl, Overgang naar nieuwe pensioenstelsel (Wet toekomst pensioenen) · Accessed
Common questions about pension tax in the Netherlands
How much tax do you pay on your pension in 2026?
It depends on your age. Below the AOW age you pay up to 35.75% in the first bracket. From the AOW age you pay 17.85% on that bracket.