Dutch Income Tax Explained for 2025

Most people think Dutch taxes are complicated and scary. But today I’ll explain

how income tax in the Netherlands works in 2025, using real numbers and real examples

that affect most people. If you work or live in the Netherlands, the main tax you

deal with is income tax in Box 1. This includes salary, freelance income, pensions and income

related to your home. For the 2025 tax year, Box 1 has three

income tax brackets. Income up to thirty-eight thousand four hundred forty-one euros is taxed at thirty-five

point eight two percent. Income between thirty-eight thousand four hundred forty-one euros

and seventy-six thousand eight hundred seventeen euros is taxed at thirty-seven point four eight