Tax after you reach AOW age
Your income tax rate drops once you reach AOW age. See how the Belastingdienst taxes your AOW and pension, with the 2026 brackets.
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Your guide to the Dutch pension system, the AOW age and what changes when you retire. We point you to the page that answers your situation. This guide also helps if your pension started abroad or you retire elsewhere.
The pension system
The Dutch pension system stands on three pillars. Pillar 1 is the AOW, the state pension the SVB (the Dutch social insurance bank) pays from your AOW age. Pillar 2 is the pension you build through an employer. Pillar 3 is what you arrange yourself, such as a lijfrente (a private annuity) or bank savings.
Your AOW age is 67 in both 2026 and 2027. For 2028 it rises to 67 years and 3 months. Figures from svb.nl and belastingdienst.nl, consulted 6 August 2026.
Once you reach your AOW age, you stop paying AOW premiums. Your first income tax bracket then drops to 17.85%. Below the AOW age that first bracket is 35.75%. Figures from svb.nl and belastingdienst.nl, consulted 6 August 2026. Both percentages apply to your first tax bracket only. Dutch tax law calls this first bracket Box 1.
A full single AOW is €1,662.16 gross a month from July 2026. For partners living together it is €1,139.39 gross each. A full AOW takes fifty years of living or working in the Netherlands. Years spent abroad lower your own amount. You build 2% of a full AOW for each year in the Netherlands.
These figures point you in the right direction. Every situation below links to the page that works out your own numbers. We explain the tax relief on lijfrente premiums in our annuity premium deduction guide.
State and work
Start here if you are approaching your AOW age or have already reached it. Your AOW and your workplace pension form the base of your retirement income. This is also where the tax on that income sits. The card below takes you to the details that fit you. Do you play professional football? We explain your pension fund on our footballers' pension page. Want to stop working early? Your advisor works out your AOW gap with you.
Your income tax rate drops once you reach AOW age. See how the Belastingdienst taxes your AOW and pension, with the 2026 brackets.
Beyond the basics
Choose this path if you want more than the basics. Maybe you want a private top-up, a shortfall to close or a pension abroad. Each card below opens the page with the details. Do you hold a US retirement account such as a Roth IRA? We cover that on our Roth IRA page.
A private annuity or lijfrente lets you build extra pension with tax relief. We show when it fits and how the yearly room works.
A pension shortfall means you are building less than you will need later. We help you see the size of it and how to close it.
Built a pension abroad, or are you retiring outside the Netherlands? Tax treaties decide who taxes what. We explain where to get yours checked.
Frequently asked
Five quick questions about retiring in the Netherlands. Your question not here? Ask your advisor
Retirement
Not sure which situation fits you? Talk it through with an advisor. We map your situation and help you work out what matters for you. Free of charge, with no obligation. Pension advice is provided by our associated company A&H Finance. They advise you, arrange the pension and invoice you.
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“You do not have to work out everything about retirement in advance. I tell you what matters for your situation and explain it in plain English. After that you can read up on the details at your own pace.”
Menno van der Made
Tax advisor
Your advisor
You do not have to figure this out alone. Tell Menno what is going on and together you look at what matters for you. In one conversation Menno maps your whole situation: your pension, your tax, your wealth and your home.
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We check every page for accuracy, timeliness and relevance. Each one is written and reviewed by our qualified advisors, so the information stays clear, complete and correct.
Updated 6 August 2026
