Personal income tax rates 2025 for income from (former and/or self-) employment and home ownership
(also referred to as “box 1”)
Annual taxable income in 2025 (€)
| Taxable income | Tax rate |
|---|---|
| No more than €38,441 | 35.82% |
| More than €38,441 but not more than €76,817 | 37.48% |
| More than €76,817 | 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.
The exact thresholds depend on whether the taxpayer has reached the AOW age during the year or for the entire year, and on the year of birth. Higher brackets are taxed at the same rates as for non-AOW taxpayers.
Income-related health insurance contribution (2025)
The income-related health insurance contribution (a mandatory contribution based on income or benefits) remains applicable in 2025.
This contribution is paid by the employer for employees, and directly by benefit-entitled persons and self-employed individuals.
| 2025 | |
|---|---|
| Employer contribution (high contribution) | 6.51% |
| Contribution of e.g. benefit-entitled persons & self-employed (low contribution) | 5.26% |
Tax rebates (heffingskortingen) 2025
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 | 2025 (€) |
|---|---|
| Maximum general tax rebate under AOW age | 3,068 |
| Maximum general tax rebate above AOW age | 1,536 |
| Maximum labour tax rebate | 5,599 |
| Income-related combination tax rebate | Applies, amount depends on income |
| Young disabled person tax rebate | Applies |
| Elderly person tax rebate | Applies |
| Single elderly person tax rebate | Applies |
| Tax rebate green investments | 0.1% |
Personal income tax rate 2025 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”):
- 24.5% on income up to €67,804
- 31.0% on income above €67,804
This applies to dividends and capital gains.
Personal income tax rate 2025 for income from equity
Income from equity (box 3) is taxed based on deemed returns on assets and debts under the transitional Box 3 system.
For the 2025 tax year, the starting point is the value of assets and liabilities on 1 January 2025. Based on this value, the Dutch tax authorities calculate a deemed return per asset category. The calculated deemed return is taxed at a rate of 36%.
During the transitional period (2023–2027), Box 3 tax is still calculated on the basis of deemed returns. However, taxpayers may choose to provide counter-evidence (werkelijk rendement) if their actual return is lower than the deemed return calculated by the Belastingdienst. If sufficient evidence is provided, the Box 3 tax must be reduced accordingly.
A new Box 3 system based on actual returns is expected to be introduced from 2028 onwards. Until then, taxation remains based on deemed returns, with the option to claim counter-evidence.
