Estimate Dutch Box 1 income tax on employment and business income using the 2026 brackets.
Box 1 covers employment, freelance, and business income. For 2026: 35.75% up to €38,883 (this bracket already includes national insurance contributions), 37.56% from €38,883 to €78,426, and 49.50% above that.
Illustrative estimate only, using simplified/rounded 2026 Dutch tax figures — not tax advice. Tax credits phase out at higher incomes, which this tool doesn't model precisely. Always confirm with the Belastingdienst or a tax advisor.
Box 1 covers income from work and home ownership — salary, self-employment profit, and the notional income from owning your main home — taxed progressively. For 2026, income is taxed at 35.75% up to €38,883, 37.56% up to €78,426, and 49.50% above that, with the lower two bands combining income tax and national insurance contributions into a single rate (a distinctive feature of the Dutch system compared to countries that show these as separate payslip lines).
Because national insurance contributions are bundled into the lower Box 1 rates rather than shown separately, a Dutch payslip often looks simpler at first glance than a UK or Irish one, even though the underlying total deduction serves a similar combined purpose of funding both general taxation and state pension/social insurance benefits.
The Dutch system deliberately bundles national insurance premiums (AOW state pension, and other social schemes) into the lower Box 1 tax rates rather than listing them separately, which is different from the UK or Ireland's approach of showing income tax and social contributions as distinct payslip lines.
No — the Netherlands splits taxable income into three boxes: Box 1 for work and home ownership income (covered here), Box 2 for income from a substantial shareholding in a company, and Box 3 for savings and investments, each taxed under entirely separate rules.
Yes, for eligible incoming employees, up to 30% of salary can be paid as a tax-free allowance rather than taxable Box 1 wages, directly reducing the income subject to these bands — see the dedicated 30% Ruling Calculator.
Yes, the Dutch system applies several tax credits (heffingskortingen) such as the general tax credit and the labour tax credit, which reduce the final tax bill directly rather than reducing taxable income, similar in effect to UK or Irish tax credits.