Netherlands Income Tax Rates for 2024

Netherlands Income Tax Brackets

Netherlands has a bracketed income tax system with four income tax brackets, ranging from a low of 2.30% for those earning under €18,218 to a high of 52.00% for those earning more then €54,367 a year.

How does the Netherlands Income Tax compare to the rest of the world?

The Netherlands income tax, at up to 52.00%, is the highest income tax rate in the world. Countries with similar tax brackets include Keep in mind that our ranking measures only nationwide income taxes, and does not account for local income taxes at state, province, or municipal levels.

Maximum Income Tax	Income Tax Allowance	World Tax Rank
52.00%	€1,987 ($0 USD)	1st of 34

What is the Netherlands Income Tax?

Netherlands's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of Netherlands. Failure to pay, or underpayment of, the Netherlands income tax can result in high fees, fines, or jail time.

In addition to Netherlands's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes.

Netherlands Income Tax Allowance

Netherlands provides most taxpayers with an income tax allowance of €1,987, which can be kept as a tax-free personal allowance. Netherlands's tax credit is a basic wastable tax credit, non-tapered, available to all (single) taxpayers without dependents.

A tax credit is a fixed amount of money that may be kept by taxpayers without paying any income taxes. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated.