Netherlands Income Tax Calculator

Estimate Dutch inkomstenbelasting across box 1, box 2 and box 3.

Free Netherlands income tax calculator using the three-box system. Box 1 (work and home) with two progressive rates, box 2 (substantial interest) with two rates, and box 3 (savings and investments) deemed-return tax. 2024 parameters, in your browser. It runs free in your browser on Gera Tools, with nothing uploaded.

Last updated Source: Gera Tools

What is the Dutch three-box system?

The Netherlands splits income into three boxes. Box 1 is income from work and home ownership, box 2 is income from a substantial interest (5 percent or more in a company), and box 3 is income from savings and investments. Each box has its own rates.

Dutch income tax refuses to be one number. The Netherlands runs a three-box system in which your salary, your company shareholding, and your savings account are taxed under entirely separate regimes that never touch — a structure with no direct equivalent in most other countries. This calculator estimates gross inkomstenbelasting by computing box 1, box 2 and box 3 separately and summing them, using the 2024 parameter set (see the note below on what changed in 2025).

The three boxes at a glance

BoxWhat it coversModeled rate(s)
Box 1Employment, freelance income, home ownership benefit36.97% (first band) / 49.50% (above €75,518)
Box 2Dividends and gains from a 5%+ shareholding24.5% (up to €67,000) / 31% (above)
Box 3Savings and portfolio investments36% on a ~6.04% deemed return

The boxes do not interact — a loss in box 3 cannot offset box 1 income, and moving assets between boxes (for instance, lending money to your own BV) is a classic Dutch tax-planning move precisely because the regimes differ so much.

How each box is calculated

Box 1 — income from work and home. Progressive in two bands under the modeled 2024 parameters: 36.97% on the first €75,518 and 49.50% on the excess. For those under state-pension age, these rates already combine the income-tax rate with national insurance (volksverzekeringen) contributions — which is why the “first” Dutch rate looks so high compared to neighboring countries.

Box 2 — substantial interest (aanmerkelijk belang). If you own 5% or more of a company’s shares, dividends and capital gains on that stake go to box 2. The modeled rates are 24.5% up to €67,000 and 31% above — the two-band structure introduced in 2024 to nudge director-shareholders into distributing profits regularly instead of hoarding them in the BV.

Box 3 — savings and investments. You are not taxed on your actual return. Instead a deemed (forfaitair) return is applied to net assets above the tax-free allowance (modeled at €57,684), and a flat 36% rate is charged on that deemed amount. The real system applies different deemed rates to bank savings (low) and investments (~6% in recent years); this tool uses the single investment-class rate of 6.04% for a conservative quick estimate. Box 3 has been the subject of long-running litigation in the Netherlands over taxing returns people never earned, and a counter-evidence scheme for actual returns has been rolling out — check the Belastingdienst for the current state of the rules.

Worked example

A single taxpayer with €60,000 of box 1 employment income, no box 2 income, and €80,000 of box 3 investments:

  1. Box 1: €60,000 × 36.97% = €22,182 (entirely within the first band)
  2. Box 3 taxable base: €80,000 − €57,684 allowance = €22,316
  3. Box 3 deemed return: €22,316 × 6.04% = €1,348
  4. Box 3 tax: €1,348 × 36% = €485
  5. Combined gross tax: ≈€22,667

The actual bill will be meaningfully lower after the algemene heffingskorting and arbeidskorting are applied — for a €60,000 earner the credits are worth several thousand euros.

What changed in 2025

The parameters above are the 2024 set. From 2025 the Netherlands split box 1’s lower band in two, creating a three-band structure with a slightly lower entry rate on the first ~€38,000 and a middle band running to a slightly higher threshold. The top rate stayed at 49.50%. If you are estimating a 2025-or-later year, treat this tool’s box 1 figure as a small overestimate for incomes in the lowest band, and verify current-year brackets with the Belastingdienst or the government’s information for entrepreneurs at business.gov.nl.

What this estimate does not include

  • Tax credits. The general tax credit (algemene heffingskorting) and labour credit (arbeidskorting) significantly reduce most people’s liability and phase out at higher incomes. This calculator shows gross tax before credits.
  • Box 3 savings/investment split. Current rules apply different deemed rates to savings versus investments, and actual-return counter-evidence is being phased in.
  • Personal deductions. Mortgage interest, alimony, and charitable gifts all reduce box 1 income before the rate applies.
  • The 30% ruling. Qualifying expatriate employees can receive part of their salary tax-free; that regime sits outside this model entirely.

Sources

Estimate only, not tax advice. Brackets, the box 3 method, and credits change every year; use the Belastingdienst’s own tools or a Dutch adviser for a binding figure. All math runs locally in your browser.