Personal income tax rates 2021
Personal income tax rates 2021 for income from (former and/or self-) employment and home ownership (also referred to as “box 1”):
| Annual taxable income in 2021 (€) | No more than 68.507 | More than 68.507 | |
| Tax rate | 37,10% | 49,50% | |
| Reached the AOW (State pension) age and born after 1945: | |||
| Annual taxable income in 2021 (€) | No more than 35.129 | More than 34.712 but not more than 68.507 | More than 68.507 |
| Tax rate | 19,20% | 37,10% | 49,50% |
| Reached the AOW age and born before 1946: | |||
| Annual taxable income in 2021 (€) | No more than 35.941 | More than 35.941 but not more than 68.507 | More than 68.507 |
| Tax rate | 19,20% | 37,10% | 49,50% |
The income-related health insurance contribution (a mandatory fixed contribution from your income or benefit) has risen by 0.30% this year. This applies to the contribution from your income, which your employer does, as well to benefit entitled persons and self-employed. See the table below for the applicable rates:
| 2021 | 2020 | |
| Employer contribution (high contribution) | 7,00% | 6,70% |
| Contribution of e.g benefit entitled persons & self-employ (low contribution) | 5,75% | 5,45% |
Please note that several tax rebates (“heffingskortingen”) may apply. They lower the tax and premium payable. These tax rebates have been increased for 2021. See the table below for the applicable rates:
| 2021 | 2020 | |
| Maximum general tax rebate under AOW age (€) | 2.837 | 2.711 |
| Maximum general tax rebate above AOW age (€) | 1.469 | 1.413 |
| Maximum labour tax rebate (€) | 4.205 | 3.819 |
| Maximum income-related combination tax rebate (€) | 2.815 | 2.881 |
| Young disables person tax rebate (€) | 761 | 749 |
| Elderly person tax rebate (€) | 1.703 | 1.622 |
| Single elderly person tax rebate (€) | 443 | 436 |
| Tax rebate green investments | 0,7% | 0,7% |
Personal income tax rate 2021 for income from substantial share ownership , applicable when owning 5% or more of the shares in a limited company (also referred to as “box 2”): 26,90% flat tax rate (2020: 26,25%) on all earnings following from these shares, such as dividends and capital gain.
Personal income tax rate 2021 for income from equity: 31% flat tax rate on (progressive) deemed interest made on equity. In brief equity can be summarized as (worldwide held) assets minus (worldwide held) debts. The point of departure is the value of the equity per beginning (January 1st) of the relevant tax year. Based upon this value the deemed taxable income (benefit from savings and investments) is calculated.
The tax burden on your assets in box 3 in 2021 is 0.59% to 1.76%, depending on the size of these assets. See the table below for the applicable rates:
| Of the part of the equity that is higher than (€) | But not more than (€) | Deemed interest is | The income tax as % of box 3 equity is |
| 50.000 (partners: 100.000) | 100.000 (partners: 200.000) | 67% + 0,03% + 33% + 5,69% = 1,8978% | 0,59% |
| 100.000 (partners: 200.000) | 1.000.000 (partners: 2.000.000) | 21% + 0,03% + 79% + 5,69% = 4,5014% | 1,40% |
| 1.000.000 (partners: 2.000.000) | – | 0% + 0,03% + 100% + 5,69% = 5,69% | 1,76% |
