In 2026 box 1 income is taxed at 35.75% up to EUR 38,883, 37.56% up to EUR 78,426 and 49.5% above that. Enter your income to see your average rate and your marginal rate, which is often higher than the bracket rate suggests.
The average rate is your total tax divided by your income. The marginal rate is what you pay on the next euro you earn. In the Netherlands the marginal rate is often above the bracket rate, because both tax credits shrink as income rises. The general tax credit is at most EUR 3,115 and shrinks by 6.398% of every euro above EUR 29,736. The labour tax credit peaks at EUR 5,685 around EUR 45,592 of labour income and then shrinks by 6.51% per euro.
On a taxable income of EUR 50,000, income tax after both credits is EUR 10,860, an average rate of 21.7%. The marginal rate on the next euro of wage is 50.5%: the 37.56% bracket rate plus the phase-out of both credits.
Box 1 holds income from work and home: wages, business profit, pensions and the owner-occupied home. Below state pension age the bracket rates include national insurance premiums, which is why the first bracket is much lower for people who have reached AOW age. Savings and investments are taxed separately in box 3, and a substantial shareholding in box 2. Rates and thresholds are indexed every year. The calculator uses the published 2026 figures; check the Belastingdienst for your own tax year before you act on a result.
No. Each rate applies only to the part of your income inside that bracket.
Yes. Business profit falls in the same box 1 brackets, after the entrepreneur deductions and the SME profit exemption.
Most deductions, such as mortgage interest, are deductible at no more than the basic rate of 37.56%, not at the top rate. Annuity premiums are an exception.
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Indicative calculation, not tax advice. No rights can be derived from the result. Check amounts and rates for your year with the Belastingdienst or your adviser.