In this guide
Short answer: if you live in the Netherlands, the Netherlands taxes your worldwide income, split over three boxes with their own rates. Your employer withholds most of the tax on your salary each month, and the annual return settles the rest. The 30% ruling, foreign savings in box 3 and the year you arrive or leave are the points where expat taxes differ from those of other residents.
This page is our overview of how the system works. When you are ready to file, go to the step-by-step filing guide. All 2026 amounts on this page come from belastingdienst.nl, checked on 24 September 2026, unless another source is named.
Are you a Dutch taxpayer?
Dutch tax law distinguishes three positions. Which one you are in decides what the Netherlands may tax.
| Position | Who | What the Netherlands taxes |
|---|---|---|
| Resident taxpayer (binnenlands belastingplichtig) | You live in the Netherlands | Worldwide income and assets; treaties prevent double tax |
| Non-resident taxpayer (buitenlands belastingplichtig) | You live abroad but have Dutch income, such as a Dutch salary or Dutch property | Only the Dutch income and Dutch assets |
| Qualifying non-resident (kwalificerend buitenlands belastingplichtig) | Non-resident living in the EU, EEA, Switzerland or the Caribbean Netherlands who meets the conditions | As non-resident, but with access to more deductions |
Where you live is a question of facts. The Belastingdienst looks at your ties: where your home is, where your partner and children live, where you work and are registered. Dutch law has no fixed day count; the 183 days you may have heard of is a rule in tax treaties about where salary is taxed, not a residency test.
The year you arrive or leave is split in two: resident for the part you lived here, non-resident for the rest. That year needs a separate return, the M-return; see which return you need.
The three boxes
Dutch income tax sorts income into three boxes. Each type of income is taxed in one box only, at that box’s rate.
Box 1: work and home
Box 1 covers salary, bonuses and holiday allowance, freelance profit, pensions, benefits, and your own home (the eigenwoningforfait added to income, minus mortgage interest).
Box 1 rates 2026, below state pension age
| Taxable income | Rate |
|---|---|
| Up to €38,883 | 35.75% (8.10% income tax plus 27.65% national insurance) |
| €38,883 to €78,426 | 37.56% |
| Above €78,426 | 49.50% |
If you pay national insurance in another country under social security rules (for example as a posted worker), the national insurance part of the first bracket does not apply to you.
Tax credits reduce the tax itself rather than your income. The two that almost every employee gets are the general tax credit (algemene heffingskorting, at most €3,115 in 2026, phased out as income rises) and the labour tax credit (arbeidskorting, at most €5,685 in 2026, phased out at higher incomes). Your employer applies them through payroll. In a year you only partly lived here, the credits can be lower; the M-form guide explains why.
2027: the Belastingplan 2027, presented on 15 September 2026, proposes new rates and credits. They are proposals until parliament passes the plan, normally in December; our Dutch income tax 2027 page compares the proposed figures with 2026.
Box 2: a stake of 5% or more in a company
Box 2 applies if you hold at least 5% of the shares in a company, for example your own BV. It taxes dividends and gains when you sell those shares. In 2026 the rate is 24.5% up to €68,843 and 31% above. Most employed expats have no box 2 income; if you do, you almost certainly need an adviser.
Box 3: savings and investments
Box 3 taxes a deemed return on your savings and investments, not what you actually earned. For 2026 the tax-free allowance is €59,357 per person (€118,714 for fiscal partners), the deemed returns are 1.28% on bank savings (provisional), 6.00% on investments and other assets and 2.70% on debts (provisional), and the rate is 36%; your balances on 1 January count, including accounts abroad. How to calculate it, what counts and the counter-evidence route if your real return was lower are in our box 3 guide.
A system that taxes actual returns (Wet werkelijk rendement box 3) passed the Tweede Kamer on 12 February 2026 but is not law: the Eerste Kamer postponed its vote on 30 June 2026. See box 3 in 2027 for the current status.
What your employer withholds
On a Dutch payslip (loonstrook), the main deduction is the wage tax (loonheffing): an advance on your box 1 income tax plus national insurance contributions, calculated with the tax credits you are entitled to. Your employer also deducts your share of the pension premium if there is a pension scheme. Employee insurance premiums (unemployment and disability) and the income-related health insurance contribution (Zvw) are paid by the employer on top of your salary; they do not come out of your net pay.
The annual return compares the wage tax withheld with the tax you owe on your full income for the year. For most employees with only a Dutch salary the difference is small; bonuses, holiday allowance, a second job or a mid-year start are the usual reasons for a refund or extra payment. See bonuses and holiday allowance and our salary after tax calculator.
The 30% ruling
The 30% ruling (expatregeling) lets your employer pay up to 30% of your salary as a tax-free allowance if you were recruited from abroad, lived more than 150 km from the Dutch border for more than 16 of the 24 months before you started, and meet the salary norm. The main points for 2026:
- Salary norm 2026: taxable salary of at least €48,013, or €36,497 if you are under 30 with a qualifying master’s degree.
- Percentage: a flat 30% in 2025 and 2026. From 1 January 2027 the maximum falls to 27%, unless the ruling was already applied to your salary on or before 31 December 2023.
- Cap: the allowance is calculated on salary up to €262,000 in 2026, so at most €78,600 a year.
- Duration: at most 5 years, reduced by earlier periods of living or working in the Netherlands.
- Box 3: the old option to be treated as a partial non-resident, which kept foreign savings and investments out of box 3, was abolished on 1 January 2025. Only people whose ruling was applied in the last wage period of 2023 can still use it, at the latest for tax year 2026; see the end of partial non-resident status.
Eligibility, the application and the 2027 transition table are in the 30% ruling guide; for your own numbers, use the 30% ruling calculator.
Income and assets abroad
As a resident you report worldwide income and assets on your Dutch return, even income that another country may tax. The Netherlands then gives relief under the tax treaty with that country, or under Dutch unilateral rules if there is no treaty, so the same income is not taxed twice. As a rule of thumb, salary is taxed where the work is done, rental income where the property is, and pensions depend on the treaty. Foreign bank accounts and investments go into box 3. Tax authorities exchange account data automatically, so foreign accounts are visible to the Belastingdienst.
Our double taxation treaties guide explains how the relief works per type of income.
If you are a US citizen or green card holder, the US taxes you on worldwide income wherever you live, and US reporting of foreign accounts applies to your Dutch accounts. In practice you file both a Dutch and a US return; the treaty and the US foreign tax credit usually prevent paying twice. The details are in our US-Netherlands tax treaty explainer.
Deductions and allowances
Deductions lower your taxable income on the annual return. The ones expats most often use:
| Deduction | In short | More |
|---|---|---|
| Mortgage interest | Interest on the mortgage for your main home, deductible at most at 37.56% in 2026; the eigenwoningforfait is added to income | Mortgage interest deduction |
| Specific healthcare costs | Unreimbursed care costs above an income-dependent threshold | Specific healthcare costs |
| Donations | To ANBI-registered organisations, above 1% of income (at least €60), up to 10%; periodic gifts under a 5-year agreement without threshold | Belastingdienst, giftenaftrek |
| Partner alimony | Deductible; child maintenance is not | Belastingdienst |
| Study costs | Abolished as a deduction from 2022 | — |
Allowances (toeslagen) are not deductions. Healthcare allowance, rent allowance, childcare allowance and child budget are monthly payments from Dienst Toeslagen, based on your income and situation. They are applied for separately, and the final amount is set after the tax year. See toeslagen for expats.
Self-employed? Freelancers pay box 1 tax on profit, with entrepreneur deductions if they meet the conditions, and file VAT returns separately. See tax for freelancers (ZZP).
Filing the annual return
You file online in Mijn Belastingdienst with DigiD. The return for a tax year opens on 1 March of the following year and, if you were invited, is due before 1 May; file before 1 April and the Belastingdienst says you will hear from it before 1 July. You can request an extension to 1 September before the deadline.
| You need | Where |
|---|---|
| Which return (standard, M or C), the steps, the 30% ruling and box 3 checks, what happens after you file | How to file your Dutch tax return |
| The documents to gather | Tax return checklist |
| Dates for the 2027 filing season | Tax deadline 2027 checklist |
| More time | Extension (uitstel) |
| Help in English, or an adviser | Belastingdienst in English and tax advisers for expats |
The online return is in Dutch: the Belastingdienst says its portals and some information on its website are only available in Dutch. It does publish English guidance, and you can call the BelastingTelefoon on 0800 0543 (from abroad +31 555 385 385); it does not run a separate English line.
What changes in 2027
Keep laws and proposals apart:
| Change | Status on 24 September 2026 |
|---|---|
| 30% ruling maximum falls to 27% (except rulings applied on or before 31 December 2023) | Law, from 1 January 2027 |
| Partial non-resident status ends for the transitional group | Law, last possible for tax year 2026 |
| New box 1 rates and tax credits for 2027 | Proposed in the Belastingplan 2027; final after the parliamentary vote, normally in December |
| Box 3 based on actual returns | Proposed, not law; Eerste Kamer vote postponed |
For the 30% ruling in 2027 see 30% ruling 2027 changes.
Related guides
- How to file your Dutch tax return
- The 30% ruling in the Netherlands
- Box 3: savings and investments
- Dutch inheritance tax for expats
- Dutch pension system for expats
- Leaving the Netherlands checklist: deregistration and your final Dutch return
This guide explains how the system works; it is not tax advice. Check belastingdienst.nl or a qualified adviser for your own situation.
Frequently Asked Questions
Do I have to file a tax return in the Netherlands as an expat?
You must file if the Belastingdienst invites you. Without an invitation, filing is often still worth it: for the 2025 return the Belastingdienst's guidance was to file if you would get back €19 or more, or owe €58 or more. The year you arrive or leave needs the M-return. Our step-by-step filing guide covers which return you need and how to file.
What are the Dutch income tax brackets for 2026?
For people below state pension age, box 1 has three brackets in 2026: 35.75% on taxable income up to €38,883, 37.56% from €38,883 to €78,426, and 49.50% above €78,426. The first rate includes 27.65% national insurance contributions. Tax credits, such as the general tax credit (up to €3,115) and the labour tax credit (up to €5,685), lower the tax you actually pay (Belastingdienst, checked 24 September 2026).
What is the difference between box 1, box 2 and box 3?
Box 1 taxes income from work and your own home: salary, freelance profit, pensions and benefits, minus mortgage interest. Box 2 taxes income from a substantial interest, a stake of 5% or more in a company, such as dividends and gains on selling those shares. Box 3 taxes savings and investments on a deemed return. Each box has its own rates, and income is counted in one box only.
How does box 3 tax on savings work in 2026?
Box 3 does not tax your actual interest or gains. For 2026 the Belastingdienst applies a deemed return of 1.28% on bank savings (provisional), 6.00% on investments and other assets and 2.70% on debts (provisional) to your assets above the tax-free allowance of €59,357 per person (€118,714 for fiscal partners), and taxes that at 36%. Your balances on 1 January count. A system taxing actual returns has been proposed but is not law.
Am I a Dutch tax resident?
Residency depends on the facts: where your home, family, work and social ties are. There is no fixed day count in Dutch law. If you moved to the Netherlands to live and registered at a Dutch address, you are normally a resident taxpayer and are taxed on worldwide income. If you live abroad and only have Dutch income, you are a non-resident taxpayer and pay Dutch tax on that income only.
Do American expats pay double tax in the Netherlands?
Usually not, but they file twice. The US taxes citizens on worldwide income wherever they live, so Americans in the Netherlands file both a Dutch and a US return. The US-Netherlands tax treaty and the US foreign tax credit normally prevent paying tax twice on the same income, but US reporting of foreign accounts still applies. Our US-Netherlands tax treaty explainer goes through it.
Is there a wealth tax in the Netherlands?
Box 3 works as one: you pay 36% on a deemed return on savings and investments above €59,357 per person in 2026, minus debts. Your own home is not in box 3; it is taxed in box 1. Dutch and foreign assets both count for residents.