Salary Calculator Netherlands

The Netherlands uses a progressive tax system (box 1) for employment income. In 2026, there are three brackets: 35.97% up to €38,441, 36.97% from €38,441 to €76,817, and 49.50% above €76,817. The first bracket rate includes social insurance premiums (AOW, ANW, WLZ) of 28.25%.

Holiday allowance is a mandatory payment of 8% of your gross annual salary. Most employers pay it as a lump sum in May. Some contracts include it in the monthly salary. If your contract states a gross salary excluding holiday allowance, your total annual compensation is 108% of the stated amount.

The two main credits are the general tax credit (algemene heffingskorting, max €3,068) which everyone receives and phases out above €24,813 income, and the employment tax credit (arbeidskorting, max €5,532) for people with employment income. Together they can reduce your tax by up to €8,600.

Dutch social contributions include AOW (old age pension, 17.75%), ANW (survivors’ benefit, 0.92%), and WLZ (long-term care, 9.58%). These are integrated into the box 1 bracket 1 tax rate of 35.97%. Additionally, your employer pays ZVW (health insurance, 5.43%) on your behalf.

The 30% ruling allows up to 30% of your gross salary (capped at €78,600 in 2026) to be paid tax-free. This significantly reduces your taxable income and can save €10,000–25,000+ per year depending on your salary. The ruling is available for qualifying skilled migrants for up to 5 years.

The Dutch minimum wage for 2026 is €13.68 per hour for employees aged 21 and older. This translates to approximately €2,371 gross per month (based on a 40-hour work week) or roughly €28,450 gross per year excluding holiday allowance.