Netherlands Income Tax Rates 2026: Personal Tax, Capital Gains and Corporate Tax

Legal framework and tax residency

The Wet inkomstenbelasting 2001 (Income Tax Act 2001) governs personal income tax. The Wet op de vennootschapsbelasting 1969 (Corporate Income Tax Act 1969) governs corporate profits. Payroll withholding is also affected by the Wet op de loonbelasting 1964. Current consolidated statutory texts are accessible through the Dutch government's legislation portal.

A resident individual is generally taxed on worldwide income, subject to treaty relief and statutory exemptions. A nonresident is generally taxable only on income with a sufficient Dutch tax connection. Residency is determined by the facts and circumstances, not nationality alone.

Box 1 covers employment, business and owner-occupied housing; Box 2 covers income from a substantial interest, generally 5% or more of shares or certain rights in a company; Box 3 covers taxable savings and investments. The same income is not ordinarily taxed in multiple boxes.

Box 1: Netherlands personal income tax rates for 2026

For individuals who have not reached the Dutch state pension (AOW) age, the following combined income tax and national insurance rates apply progressively:

The first bracket includes 8.10% income tax and 27.65% national insurance contributions. The 27.65% component comprises AOW 17.90%, Anw 0.10% and Wlz 9.65%. These are marginal rates, not a single rate applied to all earnings. Tax credits and deductions can reduce the final amount payable.

General tax credit (algemene heffingskorting) and employment tax credit (arbeidskorting) depend on the taxpayer's income and circumstances. Certain housing deductions are subject to limits, including the 2026 37.56% effective deduction rate for qualifying high-income taxpayers.

2026 Box 1 rates after reaching state pension age

Individuals already at AOW age for the full year generally do not pay the AOW premium and have a lower first-bracket rate. For those born on or after 1 January 1946:

For people born before 1 January 1946, the first bracket instead extends to EUR 41,123. The year in which a person first reaches AOW age has special blended first-bracket rates depending on the month. See the official Box 1 rate tables.

Box 2: dividends and gains from substantial shareholdings

Box 2 generally applies where an individual, alone or with a fiscal partner, has a substantial interest in a company, typically 5% or more. Taxable income may include dividends, deemed benefits and gains from selling the qualifying shares. For 2026:

The tax base and treatment of excess borrowing, losses and fiscal partners depend on statutory conditions. Corporate-level dividend withholding may be creditable, subject to the rules.

Box 3: savings, investments and second homes

Box 3 is not a conventional flat tax on the market value of every asset. Under the applicable transitional regime, taxable returns on relevant assets are calculated using prescribed return assumptions, subject to actual-return relief where applicable. The 2026 Box 3 tax rate is 36% of taxable Box 3 income, not 36% of the asset balance.

The 2026 tax-free wealth allowance is EUR 59,357 per individual, or EUR 118,714 for fiscal partners together. The provisional assumed return percentages are 1.28% for bank balances, 6.00% for other investments and 2.70% for qualifying debts. The actual-return rules and relief procedures are important because the Box 3 system has been subject to court decisions and legislative changes.

Consult the official Box 3 guidance before preparing a return.

Capital gains tax in the Netherlands

There is no single Dutch personal capital gains tax rate applicable to all assets. The correct treatment depends on the asset and the nature of the activity:

• Substantial company shareholdings: gains are generally taxable in Box 2 at the applicable progressive rates.
• Ordinary portfolio investments: usually fall within Box 3, where the taxable investment return is determined under the applicable regime rather than a separate tax on each sale.
• Business assets and active trading: gains can be taxable in Box 1 if attributable to a business or taxable activities.
• Owner-occupied homes: selling a main residence does not ordinarily create a separate capital gains tax charge, although mortgage-interest and reinvestment rules may apply.
• Companies: capital gains are generally included in corporate taxable profits, subject to exemptions such as the participation exemption when conditions are met.

Nonresident income tax and international treaties

Nonresidents may be taxed on Dutch employment income, Dutch business profits, Dutch real estate and qualifying substantial shareholdings under applicable domestic rules and tax treaties. Dutch national insurance liability does not automatically follow income tax liability. Eligible nonresident taxpayers may qualify for certain personal deductions and credits if statutory conditions are satisfied.

Cross-border workers should check the applicable double taxation agreement and social security coordination rules. Treaty outcomes may differ from the general domestic treatment.

Netherlands corporate income tax rates for 2026

The Dutch corporate income tax (vennootschapsbelasting) is generally charged on taxable profits of companies, subject to exemptions and special regimes. The 2026 rates are:

Taxable profit generally starts with revenue less allowable business expenses and adjustments. Relevant rules include depreciation, loss relief, interest deduction restrictions, transfer pricing and the participation exemption for qualifying subsidiary interests. Certain large multinational groups may be subject to the 15% global minimum tax framework; that regime is separate from the standard rates above.

The Dutch Tax Administration's 2026 corporate tax update sets out applicable changes.

Historical reference: Netherlands tax rates for 2018

The original article concerned tax year 2018. The following archival tables retain its substantive rate information, including the difference between income tax alone and combined national insurance charges. These historical figures are not applicable to 2026.

2018 Box 1 - taxpayers below AOW age

2018 Box 1 - AOW pension-age taxpayers

For individuals born before 1 January 1946, a higher threshold applied to the second band:

2018 national insurance components

2018 Box 2 and Box 3

Box 2 substantial-interest income was generally taxed at 25% in 2018. Box 3 used assumed asset-return bands; the historical source presented these proportions and returns:

Box 3 taxable return was subject to a 30% tax rate in 2018. The asset bands in the archived table should not be confused with the tax-free allowance or the 2026 system.

2018 tax credits

Credits varied with age, income and eligibility; archived values are retained as reference points, not current entitlements.

2018 corporate income tax

The earlier article described proposals to reduce corporate tax in later years. Those proposals have been superseded by enacted legislation, and the 2026 rates are shown above.

Official Dutch tax sources and legislation

Rates and tax rules are subject to amendment and individual circumstances. Use the following official resources for filing-year guidance and the legal text:

• Box 1 - 2026 rates
• Box 2 and tax calculations
• Box 3 - savings and investments
• Corporate tax changes for 2026
• Official Dutch legislation