Netherlands Tax Tables 2024 - Tax Rates and Thresholds in Netherlands

This page contains the tax table information used for the calculation of tax and payroll deductions in Netherlands in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ NL, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Netherlands or would like to add to or suggest amendments to the information herein then please contact us.

Netherlands Personal Income Tax Tables in 2024

The Income tax rates and personal allowances in Netherlands are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Netherlands Tax Calculator 2024.

The Dutch 30% Ruling for Expatriates

The 30% ruling is a tax advantage in the Netherlands designed for expatriate employees working in the country. This overview provides a comprehensive explanation of its purpose, eligibility criteria, and benefits.

Purpose of the 30% Ruling

The 30% ruling is intended to attract highly skilled professionals to the Netherlands by compensating for the extra costs associated with working abroad, often referred to as "extraterritorial costs."

Eligibility Criteria

To qualify for the 30% ruling, both the employee and employer must meet specific criteria:

• Employee Requirements: The employee must have skills or expertise considered scarce in the Dutch labor market. Typically, this is evidenced by a higher educational level and relevant work experience.
• Non-residency Requirement: Before employment in the Netherlands, the employee must have lived more than 150 kilometers from the Dutch border.
• Employment Contract: The employee and employer must agree to apply the 30% ruling in the employment contract.

Benefits of the 30% Ruling

Under the 30% ruling, several benefits are available:

• Tax Exemption: From 1^st January 2024, the rates are 30%, 20% and10% of the gross salary is tax-free up to maximum of € 233,000.00 per annum. The remaining amount is subject to regular Dutch income tax. You can calculate the impact of this deduction using the 2024 tax calculator for the Netherlands, just select Non-resident and select the 30% rule button (or 20% / 10% depending on your emplyment year within the Netherlands).
• Partial Non-Residency Status: The employee may opt for partial non-residency status for tax purposes, which can be beneficial for income from savings and investments.
• Other Benefits: This may include exemptions for specific forms of income and the ability to exchange a foreign driver’s license without taking a driving test in the Netherlands.

Significant Amendments to the Dutch 30% Ruling Effective January 2024

On December 19, 2023, the Dutch Senate approved proposed amendments to the 30% ruling, set to take effect on January 1, 2024. These modifications align with a previous decision to introduce a salary cap for the 30% ruling eligibility, where income exceeding €233,000 annually is now excluded from this tax-free allowance. This cap is applicable to employees commencing their roles in 2023.

Transition to a 30/20/10% Ruling

The principal amendment transitions the 30% ruling into a graded 30/20/10% benefit over a span of 60 months. Originally, qualified employees benefited from a tax-free allowance equivalent to 30% of their salary for a duration of 60 months. Under the new amendment, for the initial 20 months, the allowance remains at 30% tax-free. The subsequent 20 months will see a reduction to a 20% tax-free allowance, with the final 20 months of the 5-year term dropping to a 10% tax-free allowance. This adjustment significantly impacts the net salary of employees. For instance, where an employee earning an annual salary of €100,000 previously saved €74,250 in taxes over 60 months under the 30% ruling, the revised structure reduces tax savings to €49,500, marking a 33.3% decrease. For businesses employing the tax equalization method for seconded employees, this represents a substantial rise in costs.

Senate's Response to Amendments

In light of substantial critique of the amendment, the Senate has passed a motion urging the government to explore and implement an alternative solution with minimized economic repercussions. This new approach is slated for incorporation into the 2025 Tax Plan, potentially allowing for a complete or partial rollback of the changes enacted on January 1, 2024. Although the 30% ruling will initially remain at 30% for the first 20 months for new cases, the possibility of reverting the 30%-ruling adjustments without altering the tax-free allowance percentage is under consideration, albeit with uncertainty for the coming year.

Netherlands Social Security Rates in 2024

In the Netherlands, both employees and employers contribute to various social security funds. These contributions support a range of public services and social welfare programs. Below is an overview of the primary types of social security contributions and their respective purposes, without specifying the rates.

National Insurance Contributions

National Insurance Contributions are mandatory for all residents. These contributions fund:

• Old Age Pension (AOW): Provides pensions to individuals upon reaching retirement age.
• Survivor Benefits (ANW): Offers financial support to surviving dependents of a deceased contributor.
• Long-term Care (WLZ): Covers long-term nursing and care for individuals with chronic illnesses or disabilities.

Employee Insurance Contributions

Employee insurance contributions are primarily paid by employers and are aimed at employee welfare. They include:

• Unemployment Insurance (WW): Provides financial support to individuals who have lost their job.
• Sickness and Disability Benefits (WIA/WAO): Offers income support to employees who are unable to work due to sickness or disability.
• Health Insurance Contribution: Employers contribute to the national health insurance system to help cover public healthcare costs.

Healthcare Insurance Contributions

Both employees and employers contribute to healthcare insurance, which funds the universal healthcare system. This ensures access to a wide range of medical services for all residents.

Childcare Benefit Contributions

These contributions support the childcare benefit system, which subsidizes the cost of childcare for working parents.

These social security contributions are integral to maintaining the Netherlands' comprehensive social welfare system, ensuring support and protection for its citizens in various life situations.

Netherlands VAT Rates in Netherlands

VAT rates for Netherlands are reviewed annually, you can use the VAT Calculator to calculate VAT due in Netherlands or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for Netherlands

The following tax tables are supported by iCalculator™ NL as part of the suite of free tax tools we provide for Netherlands.