The Dutch personal income tax is a direct tax levied by way of assessment on the ‘income’ of private individuals. Personal income tax for private individuals consists out of three elements (so called tax ‘boxes’):
- Box 1
the tax on the taxable income from work and home; - Box 2
the tax on the taxable income from a substantial interest; and - Box 3
the tax on the taxable income from savings and investments.
Each of the aforementioned three categories of income is also referred to by the term ‘box’, so that one speaks of successively boxes 1, 2 and 3.
For more information on Box 1 and the applicable income tax rates for 2026, please refer to our detailed article here: https://taxable.nl/personal-tax/personal-income-tax-rates/personal-income-tax-rates-2026-2/
In 2025 and 2026, income from a substantial interest (Box 2) – such as dividends and capital gains derived from shares representing at least 5% of a company’s issued capital – is taxed under a two-bracket system. In 2025, income up to €67,804 per individual is taxed at 24.5%, and the excess at 31%. In 2026, the lower threshold increases to €68,843 per individual, while the rates of 24.5% and 31% remain unchanged. For fiscal partners, the lower threshold applies per person.
Income from savings and investments (Box 3) is taxed at a flat rate of 36% in both 2025 and 2026. The tax-free allowance amounts to €57,684 per individual in 2025 and €59,357 per individual in 2026 (double these amounts for fiscal partners).
Under the current transitional regime, Box 3 taxation is generally based on deemed returns. However, taxpayers may report their actual return (werkelijk rendement) if this results in a lower taxable income. This rebuttal mechanism applies until the introduction of the new system.
As from 1 January 2028, the new Box 3 regime is expected to enter into force, under which taxation will be based on actual return as the main rule, replacing the current deemed return system.
For a more detailed explanation, please see our article on Box 3 here: https://taxable.nl/news/news-on-personal-tax/personal-income-tax-return-2025-deemed-and-actual-income-in-the-dutch-equity-tax-box-3/
