How Dutch income tax works
Box 1 tax includes national insurance and has three brackets in 2026: 35.75% up to €38,883, 37.56% up to €78,426, then 49.5%. The general tax credit (up to €3,115) and the labour tax credit reduce it, so the effective rate is far lower than the headline rates.
Most employees also receive an 8% holiday allowance (vakantiegeld) in May or June. Health insurance premiums, pension contributions and the 30% expat ruling are not included.
Sources
An estimate for employees below state pension age with employment income only; not tax advice.