Tax Atlas

Netherlands: tax residency & income tax rates

Last verified September 26, 2026 by Henning Stanger, Authorized Accountant (Autorisert regnskapsfører) · 16 verified facts · 16 sources

TL;DR

  • 49.5% (as of 2026)PwC Worldwide Tax Summaries“Box 1 income is taxed at progressive rates up to a maximum of 49.50% in 2026.”View source · accessed 2026-09-26 — The top Box 1 rate for 2026 is 49.5%, applying to taxable income from work and home ownership above EUR 78,426.
  • No (as of 2026)Business.gov.nl (Netherlands Chamber of Commerce, KVK)“The Netherlands does not have a digital nomad visa.”View source · accessed 2026-09-26 — The Netherlands has no digital nomad visa.

Tax residency rules in Netherlands

Dutch tax residence is decided on all relevant facts and circumstances under Article 4 of the General Taxation Act, with the courts looking at durable personal (and to a lesser extent economic) ties, so there is no statutory day count such as a 183-day rule. As a practical guideline, an expatriate is generally resident if a married person's family comes along, or if a single person stays more than one year. [source]PwC Worldwide Tax Summaries“Article 4 of the General Taxation Act prescribes that an individual's residence position is determined based on all (relevant) facts and circumstances. In case of a dispute, the Dutch tax courts will examine the person's durable ties of a personal (and, to a lesser extent, economic) nature with the Netherlands.”View source · accessed 2026-09-26

Tax year period
1 January to 31 December (as of 2026)PwC Worldwide Tax Summaries“The Dutch tax year runs from 1 January through 31 December.”View source · accessed 2026-09-26 — The Dutch tax year is the calendar year, running from 1 January through 31 December. Income tax returns are in principle filed before 1 May of the following year.
Exit emigration rules
People who emigrate from the Netherlands may receive a protective assessment on items such as Dutch pension accrual and substantial shareholdings, where the shares are treated as sold on departure and the gain is added to Box 2. The assessment usually runs for 10 years (unlimited for substantial participations), payment is deferred automatically on a move to an EU or EEA country, and security may be required for a move outside the EU. [source]Belastingdienst (Netherlands Tax Administration)“A protective assessment usually has a validity period of 10 years. Only a protective assessment for substantial participation is valid for an unlimited period.”View source · accessed 2026-09-26

Income tax rates in Netherlands

As of 2026, the headline personal income tax rate in Netherlands is 49.5%PwC Worldwide Tax Summaries“Box 1 income is taxed at progressive rates up to a maximum of 49.50% in 2026.”View source · accessed 2026-09-26. The top Box 1 rate for 2026 is 49.5%, applying to taxable income from work and home ownership above EUR 78,426. Box 2 and Box 3 income is taxed separately at its own rates.

Capital gains individuals
The Netherlands does not tax capital gains of individuals as such. Gains on a substantial shareholding are taxed in Box 2, other investments are caught through the Box 3 deemed return, and carried-interest style lucrative investments are generally taxed in Box 1. [source]PwC Worldwide Tax Summaries“For residents and non-residents, capital gains and investment income as such are not taxable, except as detailed for Box 2 and Box 3 above.”View source · accessed 2026-09-26
Dividend withholding tax
15% (as of 2026)PwC Worldwide Tax Summaries“With regard to dividends, please note that in the Netherlands a dividend withholding tax (WHT) of 15% applies. Resident taxpayers use the withholding as a tax credit on their income tax that is levied in Box 3. For non-resident taxpayers, the withholding would be the final levy applied in the Netherlands.”View source · accessed 2026-09-26 — Dutch dividends carry a 15% dividend withholding tax. Residents credit it against their income tax, while for non-residents it is generally the final Dutch levy.
Vat standard rate
21% (as of 2026)PwC Worldwide Tax Summaries“There are three VAT rates: 21%, 9%, and 0%. The main VAT rate is 21%.”View source · accessed 2026-09-26 — The standard Dutch VAT (BTW) rate is 21%. A reduced 9% rate applies to certain necessities and a 0% rate mainly to intra-EU supplies and exports.
Box2 substantial interest
31% (as of 2026)PwC Worldwide Tax Summaries“Box 2 income is taxed at a rate of 24.5% for the first EUR 68,843 of income in Box 2 and a rate of 31% for the income above.”View source · accessed 2026-09-26 — Income from a substantial interest (generally 5% or more of a company's shares, alone or with a partner or close relatives) is taxed in Box 2 at 24.5% on the first EUR 68,843 and 31% above that in 2026. Box 2 covers both dividends and gains on selling the shares.
Inheritance gift tax
Inheritance and gift tax is charged at 10% to 40% on the value received after a relationship-based exemption, with the rate also depending on the relationship. It applies when the donor or deceased is a Dutch resident, a Dutch national within ten years of leaving the Netherlands, or (for gifts) any former resident within one year of leaving. [source]PwC Worldwide Tax Summaries“The rate levied on the net gift or inheritance (10% to 40%) also depends on this relationship.”View source · accessed 2026-09-26
Pit income brackets
35.75–49.5% (as of 2026)Belastingdienst (Netherlands Tax Administration)“Dit zijn de percentages als u de AOW-leeftijd nog niet hebt bereikt:”View source · accessed 2026-09-26 — For 2026 Box 1 income (work and home ownership) is taxed at 35.75% up to EUR 38,883, 37.56% up to EUR 78,426 and 49.5% above that, for people below state pension age. The first bracket combines 8.10% income tax with 27.65% national insurance, which is why PwC shows 8.10% in its table, and Box 2 and Box 3 income is taxed separately under their own rates.
Box3 savings and investments
36% (as of 2026)PwC Worldwide Tax Summaries“The weighted average yield over all categories will be applied to the total assets above a personal exemption of EUR 59,357 (2026) to determine the taxable benefit that will be subject to tax at a flat rate of 36% (2026).”View source · accessed 2026-09-26 — Box 3 taxes a deemed return on savings and investments rather than the actual income: assets above the EUR 59,357 per-person exemption are given fixed yields by category (2026: 1.28% bank deposits, 6.00% other assets, 2.70% debts) and the result is taxed at 36%. After Supreme Court rulings, taxpayers can show that their actual return was lower, and a new actual-return system is targeted for 1 January 2028 but still has to pass the Senate.
Social security contributions
National insurance contributions of 27.65% are levied together with income tax in the first Box 1 bracket, on income up to EUR 38,883 (capped at EUR 10,751 a year). Employees are also covered by employee insurance on income up to EUR 79,409 and must hold Dutch health insurance, with an income-related contribution of 6.10% up to EUR 79,409 plus a nominal premium of roughly EUR 1,900. [source]PwC Worldwide Tax Summaries“In the first bracket of Box 1, national insurance tax is levied at a rate of 27.65%.”View source · accessed 2026-09-26
Real estate transfer tax
2% (as of 2026)PwC Worldwide Tax Summaries“The transfer of immovable property or certain rights thereto (e.g. buildings, houses, shares in real estate companies) is subject to 2% transfer tax, payable by the new owner.”View source · accessed 2026-09-26 — Buying Dutch real estate triggers transfer tax paid by the buyer: 2% for a home the buyer will live in, 8% for residential investors and 10.4% for commercial property and building land. First-time buyers aged 18 to under 35 are exempt once, for a home worth up to EUR 555,000 in 2026.

Special tax regimes in Netherlands

The expat scheme lets an employer pay a qualifying incoming skilled employee up to 30% of wages tax-free for at most 60 months, if the salary exceeds EUR 48,013 in 2026 (EUR 36,497 for under-30s with a master's degree) and the employee lived more than 150 km from the Dutch border for over 16 of the prior 24 months. The benefit is capped at the WNT norm of EUR 262,000 (maximum EUR 78,600 tax-free in 2026), and from 1 January 2027 it falls to 27% with higher salary norms (EUR 50,436 and EUR 38,388, indexed) for rulings that started on or after 1 January 2024, although business.gov.nl still says that date depends on parliament. [source]PwC Worldwide Tax Summaries“The expat ruling may apply for a maximum period of 60 months. However, periods of prior stay in the Netherlands will, in principle, be deducted from this maximum duration period. The expat ruling must be applied for within four months of starting the Dutch employment.”View source · accessed 2026-09-26

Partial non resident status
Expat scheme users could previously elect partial non-resident status, being taxed as residents in Box 1 but as non-residents in Box 2 and Box 3. This option was abolished from 2025, with a transitional arrangement allowing those who used the scheme before 2024 to keep it until the end of 2026. [source]PwC Worldwide Tax Summaries“However, this provision is being abolished. This means that they can no longer choose non-resident taxation for income in Box 2 and Box 3. The abolition will take effect from 2025. There is a transitional arrangement for expats, who were already using or could use this facility before 1 January 2024. They can make use of the partial non-resident taxation until the end of 2026.”View source · accessed 2026-09-26

Digital nomad visa in Netherlands

No (as of 2026)Business.gov.nl (Netherlands Chamber of Commerce, KVK)“The Netherlands does not have a digital nomad visa.”View source · accessed 2026-09-26 — The Netherlands has no digital nomad visa. Non-EU/EEA/Swiss nationals staying longer than four months need a residence permit such as the self-employed person permit, which requires the business to contribute to the Dutch economy, and US and Japanese nationals can use the self-employed route under the Dutch-American Friendship Treaty or the Dutch-Japanese Trade Agreement.

Frequently asked questions

What is the top personal income tax rate in Netherlands?

49.5% (as of 2026)PwC Worldwide Tax Summaries“Box 1 income is taxed at progressive rates up to a maximum of 49.50% in 2026.”View source · accessed 2026-09-26 — The top Box 1 rate for 2026 is 49.5%, applying to taxable income from work and home ownership above EUR 78,426. Box 2 and Box 3 income is taxed separately at its own rates.

Does Netherlands have a digital nomad visa?

No (as of 2026)Business.gov.nl (Netherlands Chamber of Commerce, KVK)“The Netherlands does not have a digital nomad visa.”View source · accessed 2026-09-26 — The Netherlands has no digital nomad visa. Non-EU/EEA/Swiss nationals staying longer than four months need a residence permit such as the self-employed person permit, which requires the business to contribute to the Dutch economy, and US and Japanese nationals can use the self-employed route under the Dutch-American Friendship Treaty or the Dutch-Japanese Trade Agreement.

Sources

Explore more

When to talk to an advisor

This page maps Netherlands’s general rules — it cannot weigh your treaty position, your family and asset ties, or the timing of a move. If meaningful money depends on the answer, have a qualified advisor in Netherlands (and in your home country) review your situation before you act.