Income Tax Rate The Netherlands

A description of the tax rates in the netherlands relevant for individuals in 2020.

Income tax rate the netherlands. Dutch tax rates the netherlands has some of the highest income taxes in the world progressive tax rate bands for 2019 apply which include national insurance contributions. The system integrates the income tax with fees paid for the general old age pension system the pension system for partners of. Such as a mortgage a partner s income savings. 14 base deduction for entrepreneurs.

Besides the wage tax that you automatically pay during the year withheld from your gross salary every month you will probably need to pay an annual income tax return. Netherlands residents income tax tables in 2020. Personal income tax rates. Total per bracket.

Income tax in the netherlands personal rather than corporate is regulated by the wet inkomstenbelasting 2001 income tax law 2001. This is when other aspects of your financial life will be taken into account. Taxable amount of 200 000 and above was taxed at a 25 tax rate. Before may 1 citizens have to report their income from the previous year.

Expats with the 30 ruling can opt in the tax return to be exempted from taxation on savings and most of the investments. Income tax rates in the netherlands. 0 to 20 384 36 65 9 tax 27 65 national insurance 20 384 to 34 300 38 10 10 45 tax 27 65 national insurance 34 300 to 68 507. Taxation in the netherlands is based on a box system whereby each box contains certain income which is taxed against a certain tax rate with tax brackets credits allowances fixed rates etc.

The fiscal year is the same as the calendar year. Box 2 income is taxed at an increased rate of 26 25. In the netherlands worldwide income is divided into three different types of taxable income and each income type is taxed separately under its own schedule referred to as a box. Of more than.

Tax per bracket. The rate for taxable income in box 2 will increase to 26 9 in 2021 to prevent the corporate income tax rate reduction affecting the overall balance of the tax burden between entrepreneurs for income tax purposes. Tax rates in the netherlands 2019. Below you will find the most relevant rates for the current and previous years.

Each box has its own tax rate s. The tax rate for income from savings and investments stays 30. But less than 20 711. Income tax rates and thresholds annual tax rate taxable income threshold.

A description of the tax rates in the netherlands relevant for individuals in 2020. An individual s taxable income is based on the aggregate income in these three boxes.