The Netherlands is best known to movers for the 30% ruling. If a Dutch employer recruits you from abroad, up to 30% of your salary can be paid tax free for up to five years. That matters, because the top rate is 49.5%.
This guide covers Dutch personal tax for people moving to the Netherlands in 2026 (the tax year is the calendar year). Is your income a salary, self-employed profit, or savings and investments? Each goes in a different "box", with different rules.
What's changed: the 30% ruling stays at 30% for 2025 and 2026, then falls to 27% from 2027 for every ruling that started in 2024 or later. Since 1 January 2026 the allowance is worked out on no more than €262,000 of salary, and partial non-resident status has ended (only people who used the ruling before 2024 keep it, up to their 2026 return). The self-employed deduction has fallen from €2,470 to €1,200, and clients can be fined for false self-employment from 2026. A law to tax actual returns on savings and investments from 2028 has passed the lower house but not the Senate. Proposed, not law.
📋 Netherlands tax at a glance for 2026
Topic | Details |
|---|---|
Tax system | Worldwide income for residents, in three boxes: work and home, substantial shareholdings, savings and investments |
Top income tax rate | 49.5% above €78,426. The first band (35.75%) includes national insurance contributions |
All-in on a US$100k salary | About 19% with the 30% ruling, or about 34% without it (about €87,000, single, including national insurance contributions) |
Foreign income | Taxed for residents, with relief under the treaty with the country it comes from |
Dividends, interest, capital gains | Not taxed as such. Box 3 taxes a deemed return on your net assets above €59,357, at 36% |
Crypto gains | Taxed in box 3 on a deemed return on value, not on the gain |
Residence at a glance | Getting in: easy (no day count; it depends on your home, family and work). Leaving: protective assessments on pensions and substantial shareholdings |
Double tax treaties | 94 countries with a full income tax treaty in force, plus a limited one with Bermuda |
The 30% ruling (expat scheme)
What does the 30% ruling actually do? It lets your employer pay up to 30% of your salary as a tax-free allowance for the extra costs of living abroad. The official name is the expat scheme or 30% facility.
Image 1 — the expat tax break drops from 30% to 27% in 2027
To qualify in 2026, all of these must apply:
You're in paid employment and were recruited from outside the Netherlands.
You have specific expertise. The tax authority tests this by salary: more than €48,013 a year in 2026, or more than €36,497 if you're under 30 with a Dutch master's degree or equivalent. The threshold is measured on your salary without the tax-free allowance.
For more than 16 of the 24 months before you started work, you lived more than 150 km from the Dutch border. Living in Belgium, Luxembourg or parts of Germany, France or the UK doesn't count.
Your employer applies to the tax authority, and agrees the allowance with you in advance.
The ruling lasts up to five years. Any earlier time you spent living or working in the Netherlands is normally taken off, although a stay that ended more than 25 years ago doesn't count.
The 2027 cut to 27%
The government's transition table depends on when your ruling started:
Ruling from 2023 or earlier: 30% for its whole term.
Ruling from 2024: 30% in 2025 and 2026, then 27% from 2027.
Ruling from 2025 or later: 30% in 2025 and 2026, then 27% from 2027, together with a higher salary threshold.
So a ruling that starts in 2026 isn't locked in at 30%. It drops to 27% from 1 January 2027.
The salary cap and partial non-resident status
From 1 January 2026, the allowance for every expat is worked out on no more than €262,000 of salary, the public-sector pay ceiling (WNT). That caps it at €78,600 a year.
Partial non-resident status used to treat ruling holders as non-resident for box 2 and box 3, so foreign savings and shares escaped Dutch tax. It ended from the 2025 return. If you used the ruling before 2024, you can keep it until your 2026 return. Everyone else pays box 3 on worldwide savings and investments.
When you become tax resident in the Netherlands
There's no day-count test. Where you live is decided by your circumstances: the address where you spend most of your time, where your partner, family and children are, where you work, and where you have health insurance, a GP and club memberships.
Leaving works the same way. You stop being resident once you go to live permanently in another country; a holiday abroad doesn't count. But leaving can trigger tax. If you have a Dutch pension, an annuity or a substantial shareholding in a company, the tax authority issues a protective assessment when you emigrate: a tax bill put on hold rather than collected straight away.
Pensions and annuities: you get up to 10 years to pay, automatically if you move within the EU or EEA. After 10 years the tax can be waived.
Substantial shareholdings: there's no waiver after 10 years. The tax falls due if you sell the shares or the company stops trading.
👉 Belastingdienst: am I emigrating if I am moving abroad?
👉 Belastingdienst: income covered by a protective assessment on emigration, 2026 (in Dutch)
Income tax rates for 2026
Box 1 covers salaries, self-employed profits, pensions and your own home. The first band includes national insurance contributions of 27.65%, so the income tax element is only 8.10%.
Netherlands box 1 income tax rates for 2026
Taxable income | Under state pension age | State pension age (born from 1946) |
|---|---|---|
Up to €38,883 | 35.75% | 17.85% |
€38,884 to €78,426 | 37.56% | 37.56% |
Over €78,426 | 49.50% | 49.50% |
Source: Belastingdienst, tax calculation for 2026. State pension (AOW) age is 67 in 2026; people who reach it during 2026 pay a first-band rate between the two.
Two tax credits cut the bill: the general tax credit (up to €3,115, nil at €78,426) and the labour tax credit (up to €5,685, nil at €132,920). Above €78,426, deductions such as mortgage interest and the self-employed reliefs only give relief at 37.56%.
Box 2 taxes dividends and gains on a substantial shareholding in a company: 24.5% on the first €68,843 and 31% above that.
👉 Belastingdienst: tax calculation for 2026, box 1, box 2 and box 3 rates (in Dutch)
👉 Belastingdienst: tax credits for 2026 (in Dutch)
Worked example
You're single, under 67 and earn a salary of €87,000 (about US$100k) from a Dutch employer.
Without the 30% ruling, box 1 tax and contributions are €32,997, less the €2,989 labour tax credit: €30,008.
With the 30% ruling, €26,100 is paid tax free and €60,900 is taxed. Box 1 is €22,170, less credits of €5,810: €16,361.
Your all-in bill is about €16,360, or 19% of your salary with the ruling, against about €30,010, or 34%, without it. At 27% from 2027, the same salary costs about 20%.
Your employer pays the 6.10% income-related health insurance levy on top, so it doesn't come out of your pay.
Freelancing in the Netherlands
Self-employed people (zzp'ers) pay box 1 tax on their profit, but get reliefs that employees don't:
Self-employed deduction: €1,200 in 2026, down from €2,470 in 2025. Starters can get an extra €2,123, subject to conditions.
SME profit exemption: 12.7% of your profit after those deductions is tax free.
The self-employed deduction needs at least 1,225 hours a year spent running your business. You also pay the income-related health insurance contribution yourself: 4.85% of income up to €79,409 in 2026.
On US$100k of profit (about €87,000), a single freelancer pays about €28,080, or 32% all-in.
👉 Belastingdienst: entrepreneur deductions and the SME profit exemption for 2026 (in Dutch)
False self-employment
The tax authority ended its enforcement freeze on 1 January 2025. If a freelancer was really an employee, it can make the client pay payroll taxes, back to 1 January 2025 at the earliest. From 1 January 2026 it can also impose penalties for serious failings (vergrijpboetes). Expect clients to ask how you work.
👉 Belastingdienst: employment relationships and enforcement (in Dutch)
Crypto, investments and pensions
Box 3 taxes savings and investments in an unusual way. You're not taxed on the interest, dividends or gains you receive, but on a deemed return on what you own on 1 January.
Deemed returns for 2026: 1.28% on bank savings, 6.00% on other assets such as shares, funds, crypto and second homes, and 2.70% on debts. These are provisional figures.
Tax-free amount: €59,357 of net assets, or €118,714 for a couple.
Rate: 36% of the deemed return.
If your actual return, including changes in value, is lower, you can report it in your tax return and be taxed on that instead. Box 3 isn't formally a wealth tax, but on shares and crypto it costs 2.16% a year of the value above the tax-free amount.
Crypto sits in box 3 as an "other asset", with no tax when you sell at a gain. Hold €87,000 of crypto on 1 January and you pay about €600 for the year with no other assets, or €1,880 if your tax-free amount is used elsewhere.
The 2028 plan: the lower house passed a law on 12 February 2026 to tax actual returns from 2028: shares each year on their rise in value, property and start-up shares when sold. On 30 June 2026 the Senate put off its vote until the government brings an amending bill, and it hadn't voted by early October 2026. Proposed, not law.
👉 Belastingdienst: rates, box 3 deemed returns and tax credits used for 2026 (in Dutch)
👉 Belastingdienst: assets and debts in box 3 for 2026, including crypto (in Dutch)
👉 Belastingdienst: what is my actual return in box 3? (in Dutch)
👉 Rijksoverheid: plans to tax actual returns in box 3 (in Dutch)
Foreign pensions are taxed in box 1, unless the treaty gives the paying country the right to tax. From state pension age (67 in 2026) the first band is 17.85%. A single 67-year-old with a €34,800 (about US$40k) foreign pension and a €217,000 portfolio pays about €7,600, or 15%, including box 3 and the health contribution.
👉 Belastingdienst: I live in the Netherlands, where do I pay tax on income from abroad?
Inheritance and gift tax
In 2026 a partner or child pays 10% on the first €158,669 and 20% above that, after an exemption of €828,035 for a partner or €26,230 for a child. Other heirs pay up to 40%. Gifts use the same rates.
A Dutch national who lived in the Netherlands is treated as still living there for 10 years after leaving. Anyone else is treated that way for one year, for gifts.
👉 Belastingdienst: inheritance tax rates for 2026 (in Dutch)
👉 Inheritance Tax Act 1956 (Successiewet), article 3: the 10-year and one-year rules (in Dutch)
Social security and health insurance
If you live or work in the Netherlands, you're normally insured under the national insurance schemes. Contributions are collected with income tax in the first band: 17.90% for the state pension (AOW), 0.10% for survivors' benefits (Anw) and 9.65% for long-term care (Wlz), on income up to €38,883.
Most people who live or work in the Netherlands build up a right to the AOW state pension.
Health insurance is compulsory. Everyone who lives or works in the Netherlands must take out the standard policy and pay its premium. On top comes an income-related contribution on income up to €79,409: employers pay 6.10% for employees, and the self-employed and pensioners pay 4.85%.
👉 Belastingdienst: national insurance contributions for 2026 (in Dutch)
👉 Belastingdienst: income-related health insurance contribution for 2026 (in Dutch)
👉 Government of the Netherlands: standard health insurance
👉 Social Insurance Bank (SVB): building up an AOW state pension
Double tax treaties
Does the Netherlands have double tax treaties? Yes. The government's official overview at 1 October 2026 lists 94 countries with a full income tax treaty in force (plus a limited treaty for individuals with Bermuda), including the UK, the United States, Germany, Belgium, France, Spain, Portugal, Switzerland, Canada, Australia, Japan, India, China, Singapore, the UAE and South Africa. New treaties with Belgium and Sweden have been signed but aren't in force yet.
👉 Rijksoverheid: overview of treaties on direct taxes, updated quarterly (in Dutch)
Is there a digital nomad visa?
No. EU, EEA and Swiss citizens can live and work in the Netherlands without a permit. Most others need a Dutch employer, for example as a highly skilled migrant.
The self-employed permit is demanding. Your business must be of essential interest to the Dutch economy, and the Netherlands Enterprise Agency scores your experience, business plan and added value: at least 30 points in each, or 45 each for experience and business plan. The permit lasts up to two years.
US nationals have a separate route under the Dutch-American Friendship Treaty, with a minimum business investment of €4,500 for most business forms. Japanese nationals have a similar route.
👉 Immigration and Naturalisation Service (IND): residence permit for a self-employed person
Who is the Netherlands good for?
How does the Netherlands compare? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including national insurance and health contributions.
☑️ Who is the Netherlands good for? Tax ratings for expats in 2026
Expat profile | Netherlands rating | Why |
|---|---|---|
Employees | Good | About 19% all-in on a US$100k salary with the 30% ruling, which most skilled employees recruited from abroad can get for up to five years. Without it, about 34%. At 27% from 2027, about 20%. |
Freelancers (self-employed) | Poor | About 32% all-in on US$100k of profit, after the self-employed reliefs and including the 4.85% health insurance contribution. The 30% ruling doesn't apply. |
Retirees | Moderate | About 15% at 67 or over on a US$40k foreign pension plus a US$250k portfolio, right on the line. A bigger portfolio or retiring before 67 takes it to about 28% to 29%, and inheritance tax runs from 10% to 40%. |
Crypto gains | Good | A gain on selling crypto isn't taxed as such. Box 3 instead charges 2.16% a year on its value above the tax-free amount, whether prices rise or fall. |
Investment income | Moderate | About 25% of the return on a US$1m portfolio earning 4% income and 4% gains. Box 3 taxes a deemed 6% return at 36%, or your actual return if that's lower. |
Digital nomad visa | Poor | No digital nomad visa. The self-employed permit needs a business plan that passes a points test, which doesn't suit most remote workers. |
Filing and deadlines
Your 2026 return is normally due by 1 May 2027. Ask for more time before then and you get until 1 September 2027, although interest can run from 1 July.
You'll usually get a letter when you have to file. In the year you move in or out, you file a migration return (the M form) covering both parts of the year. You file online through Mijn Belastingdienst with a DigiD login.
Employees have tax deducted through payroll. If you're self-employed or owe box 3 tax, you can ask for a provisional assessment and pay during the year.
👉 Belastingdienst: asking for more time to file your tax return (in Dutch)
Frequently asked questions
Is the 30% ruling going down to 27%?
Yes. The ruling stays at 30% in 2025 and 2026. From 2027 it falls to 27% for every ruling that started in 2024 or later, including rulings already running. Rulings that started in 2023 or earlier keep 30% for their whole term.
What is the salary threshold for the 30% ruling in 2026?
Your taxable salary must be more than €48,013 a year, or more than €36,497 if you're under 30 with a Dutch master's degree or equivalent. The salary is measured without the tax-free allowance. A higher threshold applies from 2027 to rulings that started from 2025.
What are the income tax rates in the Netherlands in 2026?
Box 1 income is taxed at 35.75% up to €38,883, 37.56% up to €78,426 and 49.5% above that. The first band includes 27.65% national insurance contributions. From state pension age (67 in 2026) the first band is 17.85%.
How is crypto taxed in the Netherlands?
In box 3, not on your gains. In 2026 you're taxed at 36% on a deemed return of 6% of its value on 1 January, above a tax-free amount of €59,357, or on your actual return if that's lower.
How does box 3 work in 2026?
Box 3 taxes a deemed return on your net savings and investments on 1 January: 1.28% on bank savings, 6% on other assets and 2.70% on debts, at a rate of 36%. The first €59,357 is tax free, or €118,714 for a couple. A law to tax actual returns from 2028 hasn't passed the Senate.
Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
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