Dutch Income Tax — Explained Simply

Welcome. If you live in the Netherlands and earn money, you pay income

tax. For many, the Dutch tax system seems like a complicated and

daunting mystery. But most people don’t actually understand how it fundamentally works.

The most important concept to grasp is that Dutch income tax is progressive.

This means your tax rate isn't one flat percentage for everything you earn.

Instead, the more you earn, the higher tax you pay on

the top portion. Crucially, you only pay that higher tax on the extra

part of your income. You do not pay the highest tax rate on