Netherlands Salary Calculator

How Netherlands's tax system works

The Netherlands operates a two-bracket income tax system for 2026. A critical nuance is that the first-bracket rate of 36.97% incorporates mandatory national insurance premiums (AOW, ANW, WLZ), which together account for roughly 27.65%. General tax credits (algemene heffingskorting) of approximately 3,362 EUR and employment tax credits (arbeidskorting) of up to 5,532 EUR phase in and out based on income, creating effective progressivity beyond the two nominal brackets.

Taxpayers who have reached pension age no longer pay the AOW premium, reducing their effective first-bracket rate to approximately 19.07%.

Income tax brackets (2026)

Annual taxable income	Tax rate
Up to 75,624 EUR	36.97% (incl. ~27.65% national insurance)
Above 75,624 EUR	49.50%

The first-bracket rate effectively bundles income tax (~9.32%) with mandatory national insurance premiums for AOW (old age pension), ANW (surviving dependants), and WLZ (long-term care). This means the pure income tax component in bracket 1 is much lower than the headline rate suggests.

Employee social contributions

Contribution	Rate
AOW (old age pension)	17.90%
ANW (surviving dependants)	0.10%
WLZ (long-term care)	9.65%
Total employee contributions (included in bracket 1)	~27.65%

Employer social contributions

Contribution	Rate
ZVW (health insurance)	6.68%
WW/AWf (unemployment -- permanent contracts)	2.64%
WW/AWf (unemployment -- flexible contracts)	7.64%
WAO/WIA (disability)	~7.11%
Other variable charges	Variable
Total employer contributions	~18–22%

Notable features of Dutch payroll

The most distinctive Dutch payroll feature is the mandatory holiday allowance (vakantiegeld) of 8% of annual gross salary, typically paid as a lump sum in May. This effectively means total compensation equals 12.96 months of salary. The vakantiegeld is a legal entitlement and cannot be waived, making it an essential factor in employer cost calculations. Employers must also account for the transition premium (transitievergoeding), a mandatory severance payment equal to one-third of a monthly salary per year of service, which accrues from the first day of employment.

The 30% ruling is one of Europe's most generous expatriate tax incentives. It allows qualifying incoming foreign workers to receive up to 30% of their gross salary tax-free for a period of five years, substantially reducing the effective tax burden for eligible expatriates. To qualify, the employee must have specific expertise that is scarce in the Dutch labor market and must have lived more than 150 km from the Dutch border for at least 16 of the 24 months prior to employment. This ruling has made the Netherlands particularly attractive for international talent, especially in technology, finance, and academia.

The Dutch Work-Related Costs Scheme (WKR -- werkkostenregeling) provides employers with a tax-free budget of 1.7% of the total wage bill (on the first 400,000 EUR) plus 1.18% above that amount, which can be used for various employee benefits without triggering additional tax. The difference in unemployment contribution rates between permanent contracts (2.64%) and flexible contracts (7.64%) is designed to incentivize permanent employment, a policy priority for the Dutch government. The Netherlands does not mandate a 13th-month salary by law, but many collective labor agreements (CAOs) include one, and it is a widespread market practice across most industries.

Minimum wage in Netherlands (2026)

The statutory minimum gross wage in Netherlands is €2,193 per month as of 2026. This is the minimum amount employers must pay before taxes and social contributions are deducted. Use the calculator below to see what this translates to in net take-home pay.

How taxation scales with income in Netherlands

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Enter a gross salary amount to see the net take-home pay, or switch to net-to-gross mode to find out what gross salary is needed for a specific net target. The calculator uses Netherlands's 2026 tax rates, social contribution rules, and applicable allowances.

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