How pay after tax works in Netherlands
The Netherlands rolls wage tax and national insurance into a single Box 1 levy (loonheffing) on employment income, charged in bands that reach just under 50% at the top. What sets the Dutch system apart is its two large tax credits: the general credit (algemene heffingskorting) and the labour credit (arbeidskorting), which both taper as income rises and can substantially lift take-home pay for middle earners.
Most employees also receive an 8% holiday allowance (vakantiegeld), and qualifying incoming workers can use the 30% ruling, which leaves part of their salary untaxed. The calculator applies the Box 1 bands, both credits, the holiday allowance and the 30% ruling so your netto salaris reflects your situation.
What this calculator works out
- Box 1 combined wage tax and national insurance
- The general tax credit (algemene heffingskorting)
- The labour tax credit (arbeidskorting)
- The 8% holiday allowance and the 30% expat ruling