Personal income tax rates 2023 for income from (former and/or self-) employment and home ownership (also referred to as “box 1”)
Annual taxable income in 2023 (€) (not reached AOW age)
| Taxable income | Tax rate |
|---|---|
| No more than €73,031 | 36.93% |
| More than €73,031 | 49.50% |
These rates include income tax and social security contributions.
Reached the AOW (State pension) age
For taxpayers who have reached the AOW (state pension) age, lower rates apply in the first tax bracket, as no AOW premium is due.
Higher tax brackets are taxed at the same rates as for non-AOW taxpayers.
Income-related health insurance contribution (2023)
The income-related health insurance contribution (a mandatory contribution based on income or benefits) was applicable in 2023.
This contribution is paid by the employer for employees, and directly by benefit-entitled persons and self-employed individuals.
| 2023 | |
|---|---|
| Employer contribution (high contribution) | 6.68% |
| Contribution of e.g. benefit-entitled persons & self-employed (low contribution) | 5.43% |
Maximum contribution income (2023): €66,956
Tax rebates (heffingskortingen) 2023
Please note that several tax rebates (“heffingskortingen”) may apply. These rebates reduce the tax and social security contributions payable. The actual amount depends on income levels and is subject to phase-out above certain thresholds.
| Tax rebate | 2023 (€) |
|---|---|
| Maximum general tax rebate under AOW age | 3,070 |
| Maximum general tax rebate above AOW age | 1,583 |
| Maximum labour tax rebate | 5,052 |
| Maximum income-related combination tax rebate | 2,694 |
| Young disabled person tax rebate | 820 |
| Elderly person tax rebate | 1,835 |
| Single elderly person tax rebate | 478 |
| Tax rebate green investments | 0.7% |
Personal income tax rate 2023 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”):
- 26.9% on dividends and capital gains
(In 2023, Box 2 applied a single flat rate. The two-bracket system was introduced from 2024 onwards.)
Personal income tax rate 2023 for income from equity
Income from equity (box 3) is taxed based on deemed returns on assets and debts.
The starting point is the value of assets and liabilities on 1 January 2023. Based on this value, the deemed taxable income from savings and investments is calculated. The effective tax burden depends on the size and composition of the assets.
The box 3 tax rate in 2023 was 32%.
Actual return and counter-evidence (Box 3)
For the 2023 tax year, Box 3 tax was calculated on the basis of deemed returns. However, taxpayers may choose to provide counter-evidence if their actual return was lower than the deemed return calculated by the Dutch tax authorities.
If sufficient evidence is provided, the tax assessment must be reduced to reflect the lower actual return. This option is not automatic and must be actively claimed by the taxpayer, supported by relevant documentation.
A new Box 3 system fully based on actual returns is expected to be introduced from 2028 onwards.
