How Dutch income tax works
In the Netherlands your employer withholds wage tax (loonheffing) every month. The rate depends on your income:
| Taxable income 2026 | Rate |
|---|---|
| Up to € 38,883 | 35.75% |
| € 38,883 to € 78,426 | 37.56% |
| Above € 78,426 | 49.50% |
You also receive two tax credits that lower your tax: the general tax credit (algemene heffingskorting, up to € 3,115) and the labour tax credit (arbeidskorting, up to € 5,685). Both decrease as your income rises, so the effective rate on extra income can be higher than the bracket rate.
The 30% ruling (expat ruling)
If you were recruited from abroad, your employer may pay up to 30% of your salary as a tax-free allowance. This is officially called the expat ruling (expatregeling). You pay no tax on that part, so your net salary goes up considerably.
- Salary threshold 2026: your taxable salary (after the allowance) must exceed € 48,013, or € 36,497 if you are under 30 and hold a master’s degree.
- From 2027: the maximum allowance drops to 27%, unless your ruling was applied before 2024.
- Cap: no allowance on salary above € 262,000 (2026).
- Duration: up to 5 years. You must have lived more than 150 km from the Dutch border for 16 of the 24 months before you started.
Holiday allowance
Dutch employees receive a holiday allowance (vakantiegeld) of at least 8% of their annual salary, usually paid in May or June. Job offers often state the annual salary including this allowance. Enter that total amount above; the monthly result is an average that includes it.
Prefer Dutch? Use the 30%-regeling calculator or the bruto netto calculator.
Frequently asked questions
What is my net salary on € 70,000 in the Netherlands?
On a gross annual salary of €70,000 including holiday allowance, you take home about €4,087 per month on average in 2026. With the 30% ruling that rises to about €4,970 per month, roughly €10,600 more per year.
What is the salary threshold for the 30% ruling in 2026?
In 2026 your taxable salary must exceed € 48,013, or € 36,497 if you are under 30 and have a master’s degree. The threshold applies to your salary after deducting the tax-free allowance, so with the full 30% you need a gross salary of about € 68,590.
Is the 30% ruling changing in 2027?
Yes. From 2027 the maximum tax-free allowance is 27%. Employees whose ruling was already applied before 2024 keep 30% until their 5-year term ends.